Eight global companies plan to invest $2.7 billion to increase production from aging gas fields in the next fiscal year, according to a source familiar with production at the Ministry of Petroleum who spoke to Al Manassa.
The ministry is seeking to raise domestic output and reduce the energy import bill, after allocating $2 billion for oil and natural gas imports in May, when local consumption rose by about 250 million cubic feet per day.
Petroleum imports rose to $19.4 billion in the 2024-25 fiscal year, from $13.4 billion a year earlier, adding pressure to Egypt’s trade balance. The increase was driven mainly by a roughly $3.9 billion rise in natural gas imports, along with a $1.7 billion increase in petroleum products and $495.3 million in crude oil.
The source, who asked not to be named, said the Egyptian Natural Gas Holding Company (EGAS) had agreed with foreign partners on an integrated program to develop old fields, aiming to curb the natural decline in well productivity and reduce annual loss rates.
The plan targets a 10% increase in output from deepwater offshore fields in the Mediterranean and the Gulf of Suez, as well as a 7% increase in onshore field production, the source added. He said the government is speeding up payment of arrears owed to foreign companies to encourage them to inject new investments and raise production rates.
Petroleum and Mineral Resources Minister Karim Badawi said Wednesday that arrears owed to foreign partners had fallen to $440 million, from $6.1 billion in June 2024. He said the government committed to settling them in full by the end of June as part of efforts to create an attractive investment climate that supports higher production and faster exploration.
The government is also trying to reduce demand, aiming to cut gas and fuel oil consumption at conventional power plants, amid rising global energy import costs, while implementing periodic electricity price increases.
