Egypt seeks to increase its domestic oil and gas production by encouraging investment partners and committing to paying dues to foreign oil companies, according to Egyptian Minister of Petroleum and Mineral Resources Karim Badawi.

The Egyptian government is working to increase the availability of natural gas to meet the country’s needs, particularly for the electricity sector during the summer months, when the government is forced to purchase shipments of liquefied natural gas (LNG) to bridge the gap between production and consumption.

Apache Corporation, an American company operating in Egypt, is one of the most important foreign oil companies operating in Egypt. The company’s total crude oil and gas production from Egypt amounts to approximately 211,000 barrels of oil equivalent per day.

Apache invested $2.7 billion in Egypt last year, compared to $2 billion in 2023. The company has also increased its gas exploration and production operations, particularly in the Western Desert through the Khalda Company, a joint venture with the Egyptian General Petroleum Corporation.

With the completion of the construction and modernization of gas production facilities in its operating areas in the Western Desert, the company will be able to add approximately 70 million cubic feet of gas. Apache plans to increase its natural gas production in Egypt by 15% to 550 million cubic feet per day during the fourth quarter of 2025.

The company began an intensive drilling program in its concession areas in the Western Desert with the aim of boosting production, especially given the current attractiveness of gas prices compared to crude oil. This was also achieved after the government, through the Egyptian Holding Company (EGAS), approved a 61% increase in the price of new natural gas quantities newly extracted from Apache’s fields in the Western Desert, bringing the price per million British thermal units to $4.25, compared to an average of $2.65 under previous agreements.