Oil production in Egypt saw its lowest output since the early 1980s, dropping to 513k bbl/d in 2Q 2025, industry publication Middle East Economic Survey (Mees) said in a report, citing Oil Ministry data. The decline is cutting into a key source of state revenue and forcing the country to lean more heavily on oil imports to cover domestic consumption. The drop comes alongside a slump in gas output, which fell to a nine-year low of 4.2 bcf/d in 2Q.

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Good news, bad news: US oil producer Apache’s output fell 3% q-o-q to a 17-year low of 124k bbl/d in 2Q, with the company saying production will remain flat for the rest of the year. Meanwhile, Vaalco recorded a 7% q-o-q increase in output to 10.9k bbl/d. The firm drilled six wells during the quarter and will begin extraction on three this quarter, Mees added. Despite the uptick, Vaalco’s full-year guidance remains wide at 9.8k-11k bbl/d.

The decline in oil output dragged condensate volumes down, with Mediterranean condensate output dropping 4% q-o-q to about 30k bbl/d.

Egypt’s refining sector is also struggling. Throughputs averaged 490k bbl/d over the first five months of the year, covering just 56% of the country’s 875k bbl/d crude distillation unit capacity. Refinery output of 493k bbl/d met only 64% of domestic demand, with gasoline and diesel production falling well short of covering consumption.

Fuel oil demand surged, with burn rising 36% y-o-y to 101k bbl/d during the first five months of the year. Net fuel oil imports more than doubled, rising 156% to 55k bbl/d, Mees added, citing recent Jodi data. Imports are expected to ease in the coming months as Egypt leverages its four floating storage and regasification units to ramp up LNG imports, with the Egyptian General Petroleum Corporation cancelling seven mazut shipments amounting to some 2.2 mn barrels this month.

REMEMBER- Disruptions in regional natural gas supplies, notably the halt of pipeline deliveries from Israel, have forced us to rely more heavily on fuel oil and diesel to meet electricity needs during peak summer demand.

Speaking of Israeli gas: Egypt imported 890 mcf/d of gas from Israel in July, a three-month high and a 59% m-o-m increase, according to Mees data. While flows have yet to return to the 1 bcf/d levels seen previously, July’s intake matches the levels seen during the same month last year.

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