Egypt to unveil new incentives for oil companies

Egypt is planning to unveil a new package of incentives to encourage oil companies to intensify operations in the country.

The move is intended to maximise Egypt’s oil and gas resources following a decline in production over the past few years in the absence of major development projects, along with soaring domestic consumption.

Egypt has also approved a plan to drill 100 new exploratory oil and gas wells during 2026 as part of a five-year investment plan.

Petroleum and mineral resources minister Karim Badawi revealed the plan to offer new incentives at a meeting with oil executives in Cairo on Thursday.

Badawi, quoted by the ministry on its website, said the “most urgent goal” at this stage is to increase production of crude oil and natural gas.

He said the aim is to reduce the import bill and ensure that market needs are met, especially with the approach of the summer season and the increasing pressures it places on the energy system.

“The ministry is preparing to announce a new package of incentives and stimulus measures to support investment in crude oil production expansion projects,” he said.

“These incentives will soon be presented to investment partners from international and Egyptian hydrocarbon companies with the aim of boosting implementation rates and providing an additional impetus to expansion programmes.”

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Badawi said the 100 wells to be drilled this year are part of a plan stretching until 2030 for the drilling of nearly 500 exploratory wells in known and new areas.

Egypt Prime Minister Mostafa Madbouly announced this week the payment of nearly $5 billion to foreign oil companies to stimulate their work.

He said the government aims to bring the outstanding debt down to $1.2 billion by June 2026, adding that the arrears stood at around $6.1 billion in mid 2024.

Egyptian officials said in late 2025 there is a plan to boost the country’s crude output by nearly 60,000 barrels per day in the next two years

In October, Badawi unveiled a five-year plan to invest $5.7 billion in oil operations, involving the drilling of 480 oil wells.

Egypt’s extractable crude oil and gas deposits are estimated by the Arab Energy Organization at 3.3 billion barrels and 2.1 trillion cubic metres respectively.