Egypt Calls on Oil Firms to Double Output by 2030 as Gas Production Declines

CAIRO, Feb 11 – Egypt has asked international oil companies to double production by 2030 and revise existing contracts to support new investment.

Energean International Chief Executive Officer Nicolas Katcharov said that the commercial terms that supported earlier development phases are no longer sufficient, citing a widening gap between domestic gas prices and the cost of imported gas, saying that updated pricing and contract structures are needed to encourage companies to commit capital, particularly at mature fields.

He added that Energean was owed more than 200 million dollars by Egypt and had recently received 80 million dollars. Katcharov said the company remains confident in assurances from the petroleum minister that the remaining arrears will be settled. However, the petroleum ministry did not respond to request for comment.

The push for higher output comes as Egypt’s natural gas production continues to decline with production falling to 3,431 million cubic metres in November, down from 3,635 million cubic metres in October and 3,692 million cubic metres in November 2024.

Meanwhile, Petroleum and Mineral Resources Minister Karim Badawi met executives from international oil companies to discuss expanding drilling programmes and deploying advanced technologies. The ministry said the government aims to double crude oil production within five years under a broader strategy focused on enhanced drilling, including horizontal techniques.

Badawi said Egypt has moved from a period of production decline to one of stability, supported by recently introduced incentives. He confirmed that outstanding financial dues to foreign partners have been settled under a recovery plan and called for deeper cooperation to achieve sustained output growth.

Officials agreed to prepare an executive framework for boosting production using updated contractual models and modern drilling methods, with finalisation expected by the end of the month.