Egypt Eyes Billions in New Investment to Revive Oil and Gas Production

The Egyptian government is doubling down on its plans to accelerate the development of its oil and gas resources. Egypt now aims to achieve a production capacity of 6.6 billion cubic feet per day by 2027, supported by increased drilling, new exploration incentives, and greater investment from international oil and gas majors.In October, the Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi, met with Cypriot Energy Minister Michael Damianos, East Mediterranean Gas Forum Secretary-General Osama Mobarez and international oil and gas executives from firms operating in Egypt during the “The Future of Energy in Egypt” roundtable to discuss how the country might accelerate investment in the sector and boost production.The government aims to speed up the development of discoveries and connect them to the country’s existing infrastructure to maximise economic returns from the sector. Badawi said that the ministry hopes to strengthen regional cooperation and establish Egypt as a regional hub. The government plans to address development challenges in partnership with international partners to create the necessary conditions to encourage further investment in the sector.In recent years, oil and gas production has fallen, largely due to ageing Mediterranean offshore fields, particularly the giant Zohr gas field. The country is seeking greater investment in developing oil and gas discoveries, thereby reducing reliance on mature operations. Egypt hopes to continue using existing infrastructure to reduce the cost of new operations and encourage greater investment in the sector. Egypt is home to vast transportation networks, gas reception, and trading facilities. It has liquefaction capabilities and is strategically located with access to various markets.During the opening ceremony of the Mediterranean Oil and Gas Conference and Exhibition in October, Badawi said that Egypt had brought 591 new wells into production and made 113 discoveries between July 2024 and June 2026. The minister said that Egypt had been able to attract higher levels of investment, having successfully paid the outstanding debts that it owed to investment partners in exploration, discovery, and production activities.Earlier in the year, President Abdel Fattah Al-Sisi announced plans to double crude oil and condensate production as part of a five-year energy strategy during a meeting with Badawi. The government also plans to invest over $4 billion to improve six refineries by modernising existing refineries, raising domestic production of higher-value petroleum products, and reducing Egypt’s fuel import bill. The five-year strategy focuses on seismic surveys, advanced technologies, new contractual frameworks, and the development of discoveries that have yet to enter production. Al-Sisi has encouraged the government to offer additional incentives to international partners to attract more investment in the sector and encourage new exploration projects.Al-Sisi also met with the CEO of the Italian oil and gas major Eni, Claudio Descalzi, to discuss expansion. Descalzi stated plans to increase its investment in Egypt, with plans to drill 30 exploration wells and 200 development wells. Eni has invested around $8.5 billion in Egypt to date, producing approximately 242,000 bpd of oil equivalent in 2025 through its subsidiary International Egyptian Oil Company. Eni aims to increase its production in Egypt by developing new discoveries and leveraging the country’s existing infrastructure to accelerate deployment. Connecting existing infrastructure to new developments will help reduce the time required to advance new projects and extend the operating life of fields already in production. Eni will expand operations in various parts of the country, including the Mediterranean, the Nile Delta, Sinai, and the Western Desert.The company has already begun using these initiatives and has reported a 50 per cent increase in output from its offshore fields in Sinai. In April, Eni made a significant gas and condensate discovery in the Temsah Concession, located offshore in the Eastern Mediterranean, with preliminary estimates indicating 2 trillion cubic feet of gas and 130 million barrels of associated condensate. The discovery is less than 10 km from existing infrastructure, making it easier to quickly establish connectivity. In August, Eni said that first gas from the discovery would be achieved in less than two years.In October, Eni announced plans to increase its gas processing capacity in Egypt’s Western Desert through phase two of its Meleiha project in the Merged Meleiha concession. The new facility is expected to process up to 100 million standard cubic feet of gas per day once operational, supporting the government’s aims to accelerate the rollout of new gas production capacity. This will increase the availability of gas for the domestic market, according to the company.Having settled old debts, Egypt now hopes to encourage greater investment in oil and gas exploration and development over the coming years to help reverse the declining output seen in recent years. Eni has already committed to increasing investment in the North African country and will use Egypt’s existing infrastructure to bring new production online quickly. By Felicity Bradstock for Oilprice.comMore Top Reads From Oilprice.comADNOC Gas to Supply LNG to TotalEnergies Under Five-Year DealIran Reports More Tanker Fires in Strait of HormuzIndia to Require State Utilities to Add Energy Storage Capacity