• Egypt targets doubling oil production within five years
• Government renegotiates contracts to attract foreign investment
• Plan includes arrears repayment, focus on mature fields

Egypt’s government has set a target to double oil production over the next five years. International oil companies operating in the country are being asked to increase output, particularly from existing fields, to help meet that goal.

To support the plan, Egyptian authorities have launched renegotiations of existing contracts with foreign partners, arguing that current terms are not attractive enough to spur new investment. The Ministry of Petroleum is preparing a revised contractual and technical framework between the state-owned Egyptian General Petroleum Corporation (EGPC) and international companies to streamline field development and improve productivity.

Focus on Mature Fields and Advanced Drilling

The strategy centers on optimizing mature fields and deploying advanced drilling technologies, including horizontal drilling and intensive reservoir development techniques. The ministry says the country has emerged from a period of declining output and is now entering a phase of stabilization, supported by incentives aimed at boosting production.

Oil and gas service companies have expressed readiness to support the plan. International groups including SLB, Baker Hughes, Weatherford, Halliburton and Expro say they are prepared to provide the technologies needed to help raise output.

Adjusting fiscal terms is central to the strategy. Pricing structures in earlier contracts reflect market conditions that are now outdated. The widening gap between domestic and imported gas prices has reinforced the need to revise contract terms to attract fresh investment into existing fields.

Arrears Repayment Plan to Restore Investor Confidence

Outstanding debt remains another challenge. At the end of January, the Egyptian government announced a phased plan to settle arrears owed to foreign partners in the oil and gas sectors, with the aim of reducing them to about $1.2 billion by mid-2026. Clearing these arrears is seen as critical to restoring investor confidence and ensuring continued investment in field development.

Meanwhile, gas flows from Israel to Egypt have increased, strengthening Egypt’s role as a regional gas processing and export hub, while underscoring the need to boost domestic production.

Crude oil production reached 519,000 barrels per day in October 2025. Between 1994 and 2025, average output stood at 675,050 barrels per day, with a peak of 930,000 barrels per day in November 1996 and a low of 486,000 barrels per day in July 2025. Beyond the figures, the success of this strategy will shape Egypt’s ability to balance domestic energy needs with its regional ambitions, and to build a more stable and competitive energy sector.

Olivier de Souza