Egypt aims to increase its oil production by 11.5% during the upcoming fiscal year

SadaNews - Egypt plans to increase its crude oil production by approximately 11.5% by the next fiscal year 2026-2027, ending in June 2027, reaching 580,000 barrels per day, up from the current 520,000 barrels, according to a government official.

Egypt aims to reach a crude oil production of 550,000 barrels per day during the current fiscal year, which ends in June 2026.

This comes at a time when the country's oil production has decreased to 507,000 barrels per day in June 2025, marking its lowest level in nearly 47 years.

Challenges of Increasing Oil Production in Egypt

Recently, Egypt has faced a noticeable decline in oil production due to liquidity shortages and the accumulation of dues to foreign partners, prompting some companies to reduce drilling and development plans. However, the government swiftly implemented a plan to increase production by developing existing fields and accelerating exploration efforts, settling approximately $500 million in overdue payments to foreign oil companies during September, aiming to clear all arrears by the first quarter of next year, according to a government official.

The total overdue payments for foreign oil companies operating in the sector, after the last payment was settled, reached approximately $1.72 billion, of which $620 million will be paid before the end of this year.

New Fields and Expansions

The official added in his statement to "Asharq" that the government seeks to boost its production coinciding with the commencement of new field operations and expansions in existing fields, as well as increasing investments from foreign companies.

Egypt consumes about 12 million tons of diesel annually and approximately 6.7 million tons of gasoline. Any increase in production could reduce the import bill for petroleum products.

Agreements to Increase Production

In late August, Egypt signed 4 agreements with international companies including "Shell" and "Eni" to explore for natural gas and oil in the Mediterranean Sea and the Delta, with investments exceeding $343 million and drilling 10 wells.

In mid-September, the Egyptian Ministry of Petroleum and Mineral Resources signed 3 new agreements to expand oil and gas exploration activities in 3 areas in the Western Desert, Gulf of Suez, and North Sinai, with total investments exceeding $121 million, according to a statement issued by the ministry last September.

There are 57 companies operating in Egypt in the field of exploration and production, including 8 major international companies, 6 specialized Egyptian companies, and more than 12 international companies working in oil and technological services.