Egypt plans to raise crude oil production by about 27% in 2026 as part of a new output program agreed with foreign operators, a senior petroleum sector source said, in a bid to curb rising fuel import costs.
The Egyptian General Petroleum Corp. (EGPC) has submitted its final report on the 2026 production plan of foreign oil companies operating in Egypt to the Ministry of Petroleum, targeting an increase of around 140,000 barrels per day (bpd) in crude output, the source told Al Manassa.
The planned increase would lift production to roughly 660,000 bpd by the end of next year, up from the current level of about 520,000–525,000 bpd, the source, who asked not to be named, said. Egypt’s domestic oil consumption is estimated at around 750,000 bpd.
The production boost is expected to come from bringing new fields into operation and expanding output from existing wells, mainly in concession areas in the Western Desert, Eastern Desert, Gulf of Suez and Nile Delta, alongside higher investment by foreign partners in exploration and development.
A total of 57 international companies operate in Egypt in exploration and production, including eight of the world’s largest companies and more than a dozen global firms specializing in petroleum services and technology. The government is also trying to encourage more local Egyptian companies to invest in the oil sector.
The source said EGPC is coordinating with foreign companies to move six new concession areas in the Western Desert and two areas in the Gulf of Suez into the oil production phase, alongside approving a program to drill more than 10 additional wells in the same areas before the end of March.
“Any increase in crude oil production reduces the fuel import bill, which is close to $2 billion per month in the summer, and about $1.7 billion per month in the winter,” the source said.
They said foreign companies working in exploration and production in Egypt are accelerating drilling and field development programs after the government introduced a new incentives package for partners, including allowing the export of a certain share of new production, and raising the price of these companies’ share of newly added oil output.
Three global oil companies previously gave up their concession areas for gas exploration in Egypt’s Red Sea, which they won through a 2019 tender, after concluding the work in those areas was not economically viable. But a government source familiar with the offering of concession areas at the Ministry of Petroleum told Al Manassa in earlier remarks that the Ministry of Petroleum is interested in incentivizing investors and building the infrastructure to facilitate exploration in the Red Sea.
Egypt’s balance of payments for fiscal year 2024-2025 showed petroleum imports rising to record levels of $19.4 billion, compared with $7.6 billion in the previous fiscal year, driven by higher imports of liquefied natural gas and petroleum products.
