Egypt has told international oil companies operating in the country to double production by 2030 as it tries to counter falling gas output and cut reliance on imports.
Energean International CEO Nicolas Katcharov said the government made it clear that it must revise existing contract terms to encourage new investment, especially in mature brownfield fields.
He explained that domestic gas pricing structures that once supported development are no longer workable. He said the earlier low prices have run their course and pointed to a wide gap between domestic gas prices and the cost of imported gas.
Although he did not give a specific price target, he said operators will need updated fiscal and pricing terms before committing capital to expand production.
Energean has also dealt with payment delays. Katcharov said Egypt owed the company more than $200 million, though it recently received $80 million. He added that the company trusts assurances from the petroleum minister that authorities will settle the remaining arrears. The ministry did not respond to requests for comment.
The renewed push for higher output comes as Egypt’s gas production continues to fall despite earlier pledges to raise supply. Data from the Joint Organisations Data Initiative shows production dropped to 3,431 million cubic meters in November from 3,635 million cubic meters in October and 3,692 million cubic meters a year earlier.
At the same time, Katcharov said gas flows from Israel to Egypt have risen, with the pipeline running at full capacity. This highlights Egypt’s increasing dependence on imports to meet demand as domestic production declines.
Egypt’s call to revise contracts shows a stronger effort to reshape upstream terms so it can attract investment, stabilize production, and reinforce energy security in the coming years.
source: www.oilandgasmiddleeast.com
African Energy Council