Energy firms to pump $19bn investments into Egypt’s oil sector over coming 3 years, says PM

International energy companies are planning to invest more than $19bn in Egypt’s petroleum sector over the next three years, PM Mostafa Madbouly said in a statement on May 6, cited by Al Ahram.

Speaking during the government’s weekly press conference, Madbouly said Italy’s energy major Eni (BIT:ENI) had allocated investments worth $8bn, while BP (LSE:BP) plans to invest $5bn. UAE-based Arcius is expected to contribute $2bn, alongside $4bn from US energy group Apache (NYSE:APA).

Madbouly said the potential investments of major international firms will raise confidence in the Egyptian economy despite ongoing global uncertainty. He also noted progress in reducing outstanding payments owed to foreign energy partners, which had accumulated to more than $6.1bn over the past two years. According to the PM, the amount has now been reduced to $714mn, with the remaining balance expected to be settled before the end of June.

The government’s commitment to repaying dues has encouraged global companies to intensify exploration, drilling and production activities, he added.

In addition, Madbouly announced a new natural gas discovery in the Abu Madi area of the Nile Delta, which is expected to add around 50mn cubic feet per day to production. Due to its proximity to the coast, the field is expected to enter production by summer 2026. 

The PM also referred to the newly announced Denis gas field in the Mediterranean, estimated to hold more than 2 trillion cubic feet of gas (approximately 56.6 billion cubic metres) and over 130mn barrels of condensates. Production is expected to begin in H2 2027, potentially supplying up to 10% of Egypt’s gas needs.