Gov’t maps out EGP 257.7 bn drilling program push to lift oil and gas output

The Oil Ministry is lining up EGP 257.7 bn in investment to expand extraction activities over the coming period, including EGP 103 bn earmarked specifically for natural gas, a government official tells EnterpriseAM. The spending will focus on West Nile and the southern Western Desert, alongside new exploration work, as the ministry looks to lift domestic output after years of declining production and reduce reliance on imports.

A nationwide seismic survey: The ministry is launching a phased 100k-sq-km seismic survey alongside a major concession offering to attract foreign operators. The initial 18k-sq-km phase of the survey will cover West Nile and the Western Desert to identify high-potential reservoirs. Meanwhile, the Egyptian General Petroleum Corporation (EGPC) is already moving ahead with a seismic survey covering more than 50k sq km near the Libyan border.

More acreage up for grabs: The ministry has put forward 70 new oil and gas potential investments across the Mediterranean, Red Sea, Western Desert, Delta, and Gulf of Suez, the official says. The exploration push comes alongside plans for 160 new oil and gas wells this fiscal year, backed by at least USD 7.2 bn in planned investment from foreign partners, with around 30% of the wells earmarked for exploration.

The government is pairing the upstream drilling push with targeted midstream, pipeline, and refining upgrades:

• EGPC will deploy EGP 8.3 bn to replace and renew production units at active wells to improve output efficiency;
• The Petroleum Pipelines Company will spend EGP 3.6 bn to upgrade crude and LPG pipelines and renew parts of the national network;
• Assiut Oil Refining Company will invest EGP 4 bn, a package that includes the construction of a 10 MW solar power plant to reduce the refinery’s grid draw;
• The ministry also plans to complete Phase 2 of the Meleiha gas treatment plant, boosting production capacity to 125 mmcf / d once complete.

IN CONTEXT- Domestic gas output has fallen below 4 bcf / d, while existing fields are losing around 120 mmcf / d every month through natural decline. Five wells due online in October are expected to add around 100 mmcf / d — not enough on their own to offset that decline.

Imports have been doing more of the heavy lifting. The government imported around USD 7.9 bn worth of natural gas in 2025, Alarabiya reported earlier this year. The country’s regasification system can currently handle around 2.7 bcf / d, leaving the ministry’s production push aimed squarely at gradually reducing how much of that capacity Egypt needs to use.

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