The petroleum sector recorded 0.7% growth in the third quarter (Q3) of fiscal year (FY) 2025/2026, marking its first positive growth rate since the first quarter(Q1) of FY2023/2024, said Ahmed Rostom, Minister of Planning and Economic Development, while reviewing the country’s economic performance indicators.

Rostom noted during the Cabinet’s weekly meeting that the improvement was driven by higher domestic production of crude oil, condensates, and liquefied petroleum gas (LPG), signalling a recovery in one of the country’s most strategic economic sectors.

The positive performance comes as Egypt’s crude oil production has surpassed 540,000 barrels per day (bbl/d), according to Karim Badawi, Minister of Petroleum and Mineral Resources, who announced the figure during a meeting with senior officials of the Egyptian General Petroleum Corporation (EGPC) on June 17.

The sector’s recovery has been aided by the government’s clearance of outstanding payments to international oil companies (IOC). Arrears, which stood at around $6.1 billion in June 2024, were gradually reduced through an accelerated repayment program before being fully settled in June 2026.

This step has encouraged international energy companies to expand their investments and advance oil and natural gas exploration and development projects in Egypt.

Egypt has secured more than $19 billion in investment commitments from international oil companies over the next three years. The pledged investments include $8 billion from Italy’s Eni, $5 billion from British Petroleum (bp), $4 billion from US Apache Corporation, and $2 billion from the UAE’s Arcius Energy.