Egypt Targets USD 7.5B Petroleum Investments in 2024-2025 Fiscal Year

The government of Egypt is targeting a 25% increase in foreign investments in its oil and gas sector to USD 7.5 billion in the fiscal year 2024-2025, building on the USD 5.6 billion received in 2022-2023. This ambition comes despite a 5% decline in natural gas production compared to 2023 and a 25% drop from its peak in 2021.

The discovery of the Zohr field in 2015 fueled investor interest in Egypt's gas sector, leading to increased well discoveries and transforming the country into a gas exporter by September 2019. However, aging fields and wells, coupled with geopolitical headwinds, have contributed to the decline in production.

Despite this, gas exports rose by 14.3% in 2022, reaching 8 million tons and generating USD 8.4 billion in revenue, a 140% year-on-year increase. 2023 export figures are not yet available. Egypt currently exports between three and four gas shipments per month during winter, with no summer exports planned to meet domestic demand during peak temperatures.

The government is striving to balance gas exports for foreign currency with domestic market needs, especially in light of economic challenges including regional tensions and reduced dollar liquidity.