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Arab Finance: The Ministry of Petroleum and Mineral Resources outlined what it described as its most significant achievements in the oil, gas, and mineral resources sector, as part of the implementation of its strategic work program, with a particular focus on boosting exploration and domestic production to meet local demand, as per a statement.
The ministry said a package of incentive measures, alongside the regular settlement of monthly dues to foreign partners and the clearance of outstanding arrears from previous periods, has helped restore investor confidence and encourage new capital inflows.
As a result, the decline in natural gas and crude oil production was halted for the first time in four years.
Since August, gas output has entered a gradual upward trend, while crude oil production has stabilized after a prolonged decline, laying the groundwork for a return to growth.
In parallel, the ministry has prepared a new incentive package aimed at increasing crude oil production and achieving self-sufficiency under a five-year plan.
Around 430 wells were brought onstream, adding nearly 1.2 billion cubic feet of gas and more than 200,000 barrels of crude oil and condensates to domestic production, contributing to a reduction in the country’s import bill.
Drilling operations resumed in 2025, with new wells entering production at the Zohr field, which now accounts for roughly 25% of Egypt’s total gas output.
Exploration activity also accelerated, with 82 new oil and gas discoveries recorded, including 60 crude oil finds and 22 gas discoveries, 67 of which have already entered production.
A new five-year exploration plan was launched, targeting the drilling of 480 wells with investments nearing $6 billion.
During the year, 33 new exploration and production agreements were signed, with minimum investments exceeding $1.6 billion and commitments to drill more than 170 new wells.
The ministry also offered nearly 70 new investment opportunities for oil and gas exploration and production across the Mediterranean and Red Seas, the Western Desert, the Gulf of Suez, and the Nile Delta.
It said attractive investment schemes were introduced in the Western Mediterranean and the Red Sea to draw international companies into these underexplored areas.
Major global energy players have since announced planned investments in Egypt totaling around $17 billion over the next four to five years, including $8 billion from Italy’s Eni, $5 billion from Britain’s BP, and $3.7 billion from UAE-based Archius Energy.
Seismic surveying was identified as a central pillar of the exploration strategy, aimed at improving data quality, reducing investment risk, and opening new frontier areas.
A seismic survey covering more than 100,000 square kilometers in the southern Western Desert, including West Assiut and the Dakhla region, was launched and is expected to run for 12 months.
Another survey was initiated in the Eastern Mediterranean, spanning about 95,000 square kilometers using advanced ocean-bottom node technology to assess gas potential and support future production growth.
The ministry said it also implemented a proactive plan, backed by President Abdel Fattah El-Sisi and Prime Minister Mostafa Madbouly, to overcome energy challenges and secure sufficient fuel supplies for power plants during the summer.
Gas supplies are now secured to fully meet the needs of the industrial sector and other economic activities for the next five years.
Alongside efforts to raise domestic output, an integrated system was established to import liquefied natural gas through regasification vessels with a total capacity of up to 2.7 billion cubic feet per day, supported by the work of more than 1,500 petroleum sector employees.
On the domestic consumption side, the ministry reported supplying 55 million tons of petroleum products and 3.356 trillion cubic feet of gas to the local market.
Natural gas was connected to 940,000 residential units, helping save an estimated 17 million butane cylinders and the subsidies associated with them.
More than 650 villages have now benefited from the Decent Life initiative, while 90,000 vehicles were converted to operate on natural gas and around 50 new gas refueling stations were added nationwide.
