Egypt has achieved a nearly 20% jump in crude oil production, reaching its highest level in almost two years, after the government settled billions of dollars in overdue payments owed to foreign investment partners, unlocking fresh drilling and development spending.

Petroleum Minister Karim Badawi said the country now produces between 520,000 and 550,000 barrels of crude oil per day, crediting a ministry strategy focused on clearing investor arrears to encourage new capital, additional drilling rigs and expanded exploration budgets. Ministry spokesperson Mahmoud Nagy said much of the gain came from renewed investment in wells that had gone inactive for lack of funding, now returned to productive maintenance and output.

Badawi said refinery throughput has also strengthened, with operating rates climbing to around 80% this year, helping meet domestic fuel demand and cut import needs, while boosting petroleum product exports past 2.3 million tonnes in the first half of 2026 alone — matching all of 2025’s export total. He said Egypt aims to push exports to roughly 2.5 million tonnes in the second half of the year. During a separate visit to the Alexandria Petroleum Company, Badawi said improved refinery efficiency was lifting output of gasoline, jet fuel and diesel while cutting operating costs.

Salah Hafez, former deputy chairman of the Egyptian General Petroleum Corporation, said the surge supports Egypt’s ambition to become a regional energy hub, but cautioned that sustaining it will require replacing depleted reserves with new discoveries. He pointed to promising, though still unconfirmed, prospects in Egypt’s western regions and the western Mediterranean that remain in the exploration stage.

Source: english.aawsat.com, en.amwalalghad.com