Egypt’s petroleum ministry plans to drill 133 new oil and gas wells this fiscal year with $5.5 billion in foreign-funded investments, Al-Arabiya reports. The country’s energy security hangs in the balance, relying on record imports of Israeli gas.
Prime Minister Mostafa Madbouly said last week that Egypt’s two liquefied natural gas (LNG) facilities in Edku and Damietta give the country a regional edge, predicting domestic output will recover to 6.6 billion cubic feet a day (bcf/d) by 2027.
Gas production has fallen since 2023, slipping below the 6 bcf/d needed to cover local demand. In 2024, Egypt regressed to a net importer of natural gas, after five years of holding a net exporter position. This shortfall triggered repeated power cuts, disrupting electricity generation and industrial activity.
The new drilling campaign will target gas concessions in the Red Sea, Mediterranean, Nile Delta and Western Desert, alongside oil fields in the Gulf of Suez, Western Desert and Mediterranean. The aim is to offset steep natural decline rates of about 20% for oil and 15–20% for gas, Al-Arabiya reported.
The push comes as Egypt’s reliance on Israeli imports grows.
Earlier this month, Israel’s NewMed Energy, a partner in the Leviathan field, signed the country’s largest-ever export deal worth as much as $35 billion to ship gas to Egypt.
Leviathan began supplying Egypt in 2020 under a 2019 agreement for about 60 billion cubic meters over two decades.
The new contract includes a “take-or-pay” clause requiring Egypt to pay in full for contracted volumes even if global prices drop or cargoes aren’t received, according to local outlet Saheeh Masr on X.
Madbouly said the deal extends cooperation until 2040, yet won’t alter Egypt’s political stance on the Palestinian issue. He framed the accord as part of Cairo’s strategy to become a “regional hub for energy trade and exports.”
