Four foreign energy companies will deploy $650 million in Egypt during the second half of 2026 to drill new wells and expand crude output by 19%, aiming to curb reliance on foreign petroleum imports, an Egyptian General Petroleum Corporation (EGPC) official told Al Manassa.
Speaking on condition of anonymity, the official described the plan as “exceptional” in scale. The capital allocation targets seven concession areas held by Dragon Oil, Apache Corporation, Dana Gas, and Cheiron Petroleum, and is projected to add approximately 100,000 barrels per day (bpd) to domestic crude supplies.
The expected production boost could trim Egypt's fuel import reliance by 12–15%, depending on domestic consumption patterns and the deficit between local supply and demand. Any drop in imports would ease the strain on foreign exchange reserves and reduce the national import bill.
Balance of payments data underscores the urgency: Egypt’s petroleum imports climbed by nearly $3 billion between July 2025 and March 2026, reaching $17.3 billion as domestic demand outstripped local production.
Data from the Joint Organisations Data Initiative (JODI) showed Egyptian crude output averaged 501,000 bpd in May 2025. However, Ministry of Petroleum spokesperson Mahmoud Nagy stated during a television appearance earlier this week that current production has risen to roughly 550,000 bpd.
The source attributed the capital surge to recent incentive packages approved by the Ministry of Petroleum and Mineral Resources. Key reforms include expediting arrears payments to foreign operators, preventing the accumulation of new debt, offering flexible pricing incentives for high-cost concessions, and expanding field development programs.
These measures have restored foreign investor confidence, encouraging new drilling and exploration—particularly in concessions holding reserves that can be brought online rapidly to offset natural declines in mature fields, the official added.
