Egypt aims to restore its oil and gas production to normal levels by 2025, leveraging partnerships with international companies, as announced by Prime Minister Mostafa Madbouly. The country had previously aspired to become a regional hub for liquefied natural gas, especially following significant discoveries like the Zohr gas field, which holds an estimated 30 trillion cubic feet of gas.
However, production has been hampered by a shortage of foreign currency, leading to accumulated arrears to foreign energy firms. The Egyptian government has begun addressing these debts, initiating a payment plan to settle 20% of the outstanding amounts owed to foreign companies involved in petroleum projects.
In the context of energy needs, Egypt faced challenges during the summer, resorting to load-shedding to maintain its power grid, and requiring imports of natural gas and mazut fuel oil to mitigate electricity cuts. As of July, the country’s gas production was reported at 5.7 billion cubic feet per day. In a bid to boost production, Egypt signed agreements with international companies in July for an investment of $340 million aimed at enhancing oil and gas output in the Mediterranean and Gulf of Suez.