Egypt's Planning and Economic Development Minister Ahmed Rostom and Petroleum and Mineral Resources Minister Karim Badawi recently met to review the performance of the petroleum sector and discuss ways to boost production and investment. The meeting aimed to address several issues related to improving services provided to citizens and enhancing the sector's contribution to the national economy. The petroleum sector is considered one of Egypt's vital economic sectors, playing a crucial role in meeting domestic energy needs and supporting various productive and service activities.
Minister Rostom emphasized the importance of developing the petroleum sector and improving its production efficiency to support the national economy and achieve sustainable development goals. He praised the sector's pivotal role in supporting economic growth, citing a significant improvement in performance and high growth rates in petroleum refining. Refining activity grew by 22.4% in the third quarter of FY2025/2026 and by 8.7% during the fiscal year as a whole. This growth reflects the sector's positive trajectory and its potential to contribute to Egypt's economic development.
Minister Rostom also commended national efforts to boost investment in the petroleum and energy sector, particularly the successful payment of outstanding dues to foreign partners. This move has helped restore confidence in the investment climate and paved the way for increased investment in exploration and field development. As a result, domestic production is expected to rise, and the sector's ability to meet market needs will be strengthened. The payment of outstanding dues has also enabled the sector to overcome previous challenges and focus on future growth.
Minister Badawi stated that the petroleum sector is continuing to grow positively, overcoming challenges and returning to pre-accumulation production levels. Crude oil production has resumed growth, and petroleum refining activity is expanding. The decline in gas production is being brought under control, preparing for a return to growth. Badawi attributed these results to the significant efforts of workers across the sector and the payment of partners' outstanding dues, which has restored the flow of investment needed for field development and exploration.
Increasing domestic oil and gas production is a top priority for the Ministry of Petroleum and Mineral Resources. The ministry aims to develop existing fields and intensify exploration for new discoveries to meet the needs of citizens and state sectors, reducing imports. Minister Badawi emphasized that expanding natural gas connections to homes as an alternative to butane cylinders is a priority, providing a more convenient and lower-cost service and improving quality of life. The ministry is also working to convert vehicles to run on natural gas and increase the number of natural gas filling stations.
The ministry is coordinating with the Ministry of Electricity to implement the state's strategy and increase the contribution of renewable energy to electricity generation, reducing gas consumption and helping lower the gas import bill. Projects to connect Cypriot gas fields to Egyptian infrastructure are also underway, strengthening Egypt's role as a regional energy hub and maximizing the economic benefits from existing facilities. These efforts aim to secure additional gas supplies for the domestic market and support Egypt's economic growth.
The number of vehicle fuel service and filling stations has increased significantly, from 2,900 in 2014 to 4,107 in FY2025/2026. This expansion is part of efforts to improve services provided to citizens, keep pace with urban growth, and extend services to remote and desert areas and new communities. The growth in the number of filling stations reflects the government's commitment to enhancing the petroleum sector's services and meeting the needs of citizens.
Key points
- Egypt's government is intensifying efforts to increase oil and gas production and attract investment in the sector.
- The petroleum sector is considered one of Egypt's vital economic sectors, playing a crucial role in meeting domestic energy needs and supporting various productive and service activities.
- The ministry aims to develop existing fields and intensify exploration for new discoveries to meet the needs of citizens and state sectors, reducing imports.
