International companies set to invest $4 billion in Egypt’s oil sector

International companies are set to infuse approximately $4 billion into Egypt's oil sector during the fiscal year 2024/2025, according to a report from Asharq Bloomberg, citing a government official. Egypt plans to boost crude oil production by 9% to reach 637,000 barrels per day in FY2024/2025, aligning with efforts to reduce reliance on imported petroleum products and mitigate the country’s foreign currency crisis.

These investments will predominantly bolster oil development and exploration, and are centered on the Western Desert and Gulf of Suez regions. One of the most prominent projects is the North Safa field, the largest oil discovery in the Gulf of Suez, with reserves of over 95 million barrels, operated by UAE's Dragon Oil. The company has pledged a total investment of $200 million for the field's development and oil extraction.

In February, Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, announced Egypt's ambition to increase foreign investment in the oil and gas sector by approximately 25% in FY2024/2025, to $7.5 billion.