Egypt’s oil and gas sector is one of the most dynamically developing sectors of the economy, accounting for about 24% of the country’s GDP in 2019–2020. The growth rate of the oil refining sector over the same period amounted to 25% of Egypt’s GDP, which is the highest among other sectors of the Egyptian economy.
Egypt has significant energy resources, both traditional fossil fuels and renewable energy sources. The country’s proven hydrocarbon reserves at the end of 2020 were 3.6 billion barrels of oil and 75.5 trillion cubic feet (tcf) of natural gas.
Oil production and oil refining are actively developing in Egypt. The Egyptian government is actively encouraging international oil and gas companies to develop this sector. Currently, there are more than 50 international oil and gas companies operating in Egypt.
Due to the developed petrochemical sector, Egypt can almost completely provide itself with fertilizers and fuel. At least the Egyptian government plans to transition to full self-sufficiency.
One of the elements of the development of the oil sector in Egypt can be considered the transfer to development and production with the provision of lease of gas and oil fields on the Red Sea shelf. For example, in recent years, several fields have been transferred to the Russian oil and gas company Gazprom.
In recent years, the Egyptian government has been developing the gas sector and plans to reach 1,500 natural gas compression stations.
Egypt’s oil industry is managed by the Ministry of Petroleum and Mineral Resources, under which five state-owned companies operate:
- The Egyptian General Petroleum Corporation (EGPC)
- The Egyptian Natural Gas Holding Company (EGAS)
- The Egyptian Petrochemicals Holding Company (ECHEM)
- The Ganoub El-Wadi Holding Company (GANOPE)
- The Egyptian Mineral Resources Authority (EMRA)
There are three main categories of oil produced in Egypt:
- Suez blend
- Belayim blend
- Western Desert blend
The Western Desert blend is produced from new oil fields in the Western Desert. These oil fields are currently the largest crude oil producers in Egypt and account for 56% of the country’s total production.
Crude: West Desert
| Assay Data | |
| Property | Minimum (typical) |
| API Gravity: | 41 |
| Gas to C4 %wt: | 2.55 |
| Total Wax %wt: | 13.5 |
| Pour Point °c: | -3 |
| Cloud Point °c: | 33 |
| H2S in Oil Phase ppm: | <5 |
There has even been a demand in Egypt’s oil sector to increase oil production through horizontal drilling and expansion of old oil fields. To carry out these works, the Egyptian government is ready to work with foreign companies, including from Russia.
However, foreign companies may face difficulties with foreign exchange earnings, since there is a shortage of dollar currency in Egypt and companies willing to participate in tender projects in the oil and gas sector must be prepared for this situation.
