Energy output continues to decline in 2025: Gas output dropped 20% y-o-y to 4.3 bn cubic feet per day (bcf/d) in January, marking its lowest monthly level since December 2016, according to industry publication Middle East Economic Survey (Mees). “As of the latest data, the losses show no sign of slowing,” Mees said.

The details: Gas production from the West Delta region saw a 3% m-o-m dip in January to sit at 3.1 bcf/d — an eight-year low — despite more of Shell’s West Delta Deep Marine wells going online in early January. Output from the Western Desert has been stable since November at 763 mcf/d — a multi-decade low — while output from the onshore Nile Delta region fell to its lowest level since mid-2014 to 332 mcf/d.

REMEMBER- We had big energy plans for the year, with unconfirmed reports last year saying that the government is looking to seedomestic production rise by 30% to 6 bcf/d by the end of 2025.

While recent activity could help improve output, it’s not enough. Global energy giant BP kicked off production from the second development phase of its Raven natural gas field in its North Alexandria offshore concession last month, which is expected to produce some 220 bcf/d of gas, but Mees calls the figure “optimistic.”

Another sign that recovery is imminent: Dana Gas — one of the key producers in the Nile Delta — plans to launch a USD 100 mn project to develop production after receiving the rest of its outstanding dues. The investment includes the drilling of 11 new wells and is expected to add 80 bcf/d of gas reserves. The Emirati oil and gas giant saw its output halve to 80 mcf/d over the past seven years, according to Mees.

AND- US oil producer Apache is “hopeful of gas output gains over the coming months as it steps up gas-focused drilling having secured higher prices for new output.” Apache last month announced plans to kick off a USD 60 mn drilling program in its Western Desert blocks this month as it looks to ramp up natural gas production by a daily 80 mcf/d.

The outlook is even worse for oil production: “Whilst there are some positive signs for Egypt’s gas output trajectory in 2025 — though, given steep underlying decline rates, the smart money is on slower decline rather than overall gains — for oil there are few if any positive signs,” Mees wrote.

The figures: National oil production dropped to 523k barrels per day (bbl / d) in January, marking the lowest monthly figure in over 40 years. The Western Desert — accounting for nearly half of Egypt’s overall oil production — recorded a 2% m-o-m dip in oil output to 274k bbl/d in January.

IN OTHER ENERGY NEWS-

The real reason Energean terminated its asset sale to Carlyle was because the latter wasn’t able to obtain a letter of patronage required by Italian authorities necessary for the sale to go through, Mees reports. The report adds more color to Energean’s statement which said Carlyle missed a 20 March deadline to secure the necessary regulatory approvals from Egypt and Italy and antitrust approvals from the countries and the Common Market for Eastern and Southern Africa.

REMEMBER- The USD 945 mn sale would’ve seen Carlyle use the acquisition to form a new Mediterranean-focused oil and gas company chaired by former BP CEO Tony Hayward.

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