Egypt has announced plans to drill 480 exploratory oil wells over the next five years under a $5.7 billion investment program, part of a broader effort to reverse declining crude output and reinforce its position as a leading energy producer in North Africa.
Petroleum and Mineral Resources Minister Tarek El Molla confirmed the plan on 14th October 2025, noting that 101 of the wells will be drilled in 2026 across the country’s key producing basins. The initiative aims to stabilise national production, which currently stands at around 559,000 barrels per day, amid a period of falling yields from mature fields and rising domestic demand for petroleum products.
The drilling program forms the backbone of Egypt’s new hydrocarbons strategy, which runs through 2030 and allocates a total of $7.2 billion for 586 wells. It reflects Cairo’s attempt to balance its ambitions as a regional energy hub with the practical need to sustain output levels that support both domestic consumption and export commitments.
In the past decade, Egypt has transformed from an energy importer to a net exporter of natural gas, largely due to major offshore discoveries such as the Zohr gas field in the Mediterranean, estimated to hold 30 trillion cubic feet of gas. Yet, oil production has not followed the same trajectory. Output has fallen steadily since its 2016 peak of over 700,000 barrels per day, pushing the government to intensify exploration and partner with international operators.
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The Ministry of Petroleum has recently signed a series of exploration and development agreements with global energy companies including Eni, BP, and Chevron, extending exploration zones across the Western Desert, the Gulf of Suez, and the Mediterranean. These partnerships are expected to inject new technology and capital into Egypt’s upstream operations, which remain the most capital-intensive part of its energy value chain.
While details of the $5.7 billion financing are yet to be disclosed, the ministry said discussions are ongoing with both state and private investors. International participation is expected to remain strong following renewed confidence in Egypt’s energy policies and infrastructure.
Earlier this month, QatarEnergy acquired a 27% stake in the North Cleopatra offshore block in partnership with Shell, underscoring the growing foreign appetite for Egyptian oil and gas assets. Officials view these collaborations as essential to offset the fiscal burden of exploration while ensuring knowledge transfer and technological capacity-building within local companies.
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Analysts say Egypt’s renewed drilling effort is as much about economic positioning as it is about energy supply. The country sits at a strategic intersection between Africa, the Middle East, and Europe, and is increasingly being viewed as a critical node in regional energy logistics, particularly with its liquefied natural gas (LNG) terminals on the Mediterranean coast. Maintaining robust oil and gas output underpins Cairo’s strategy to leverage its infrastructure for export and regional energy trade.
However, the scale of the new exploration push raises questions about long-term sustainability and diversification. While Egypt continues to invest in renewable energy, targeting 42% of electricity generation from clean sources by 2035, its near-term fiscal priorities remain anchored in hydrocarbons. The dual challenge for policymakers is to ensure that revenues from oil and gas development fund the transition to a lower-carbon economy, rather than delay it.
Environmental advocates have urged the government to align new drilling projects with Egypt’s commitments under the Paris Agreement, which includes reducing emissions intensity and curbing flaring in upstream operations. The Ministry of Petroleum has pledged to integrate cleaner technologies and energy efficiency measures in future production facilities, though implementation remains closely tied to financing conditions and foreign partnerships.
The announcement also coincides with mounting competition among African oil producers to secure investment amid global shifts in capital allocation. Countries such as Namibia, Angola, and Nigeria are expanding exploration budgets, seeking to attract international financing before global demand peaks later this decade. For Egypt, the challenge will be to demonstrate that new investments can both sustain economic growth and comply with emerging global sustainability standards.
Egypt’s long-term plan projects modest but steady gains in production through 2030, anchored by new wells and improved recovery techniques in older fields. Officials say that while oil will remain part of the national energy mix for the foreseeable future, the country intends to use its hydrocarbon wealth to underwrite industrial diversification, infrastructure development, and renewable deployment.
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If successfully executed, the $5.7 billion drilling initiative could mark a turning point, stabilizing output, reinforcing investor confidence, and securing Egypt’s place in the evolving energy landscape of Africa and the Mediterranean. But success will depend on execution discipline, transparency in partnerships, and a clear strategy to ensure that new oil wealth contributes to a sustainable, inclusive economic transition.
