Egypt’s Oil Production Surges with Major New Exploration Deals Worth Over $460 Million
Egypt has secured a massive influx of foreign investment in its energy sector, with new exploration agreements totaling more than $460 million as the country works to reverse years of declining oil and gas production. The deals span multiple regions and involve major international players, signaling renewed confidence in Egypt’s energy potential.
Egypt Kuwait Holding’s subsidiary Parenco Egypt secured rights to drill offshore North Sinai under a $121 million agreement that includes three new wells. The deal represents a significant vote of confidence from Kuwaiti businessman Loay Jassim Al-Kharafi’s holding company, which has been steadily building its upstream portfolio in Egypt.
Additional major commitments include Dubai-based Dragon Oil’s $40.5 million agreement targeting the Suez Gulf and Apache’s $35 million deal covering 14 wells across five Western Desert exploration areas. These agreements form part of a broader $343 million investment wave that also includes Shell’s $120 million commitment to drill three Mediterranean wells in the Merneith block and Eni’s $100 million East Port Said exploration program.
The investment surge comes as Egypt’s oil output approaches 700,000 barrels per day, supported by new infrastructure, improved recovery methods, and upgraded refining technology. Minister Karim Badawi emphasized Egypt’s strategic position as a regional energy hub linking Africa, Europe, and Asia.
The momentum extends beyond new deals, with existing operators delivering strong results. Khalda Petroleum Company, a joint venture between Apache and the Egyptian General Petroleum Corporation, achieved remarkable success in fiscal year 2024/25, making 23 oil discoveries including West Faiops-1X and NUT S-1X while exceeding production targets with natural gas output reaching 514 million cubic feet per day.
Egypt’s broader strategy includes regular payment of monthly dues to foreign partners and settlement of $1 billion in arrears, helping stabilize production and attract new investments. The ministry has implemented production incentives and offered 64 new investment opportunities through the Egypt Upstream Gateway platform.
Sources: billionaires.africa, egyptoil-gas.com
