Egypt has instructed international oil companies operating in the country to double their production by 2030, Energean International Chief Executive Officer Nicolas Katcharov told Reuters on Tuesday, noting that existing contracts will need to be revised to attract fresh investment.
Katcharov said the low gas prices that supported earlier development stages are no longer viable, making it necessary to update commercial terms to encourage companies to commit capital and increase output from existing fields.
“I can’t tell the exact price, but there is a huge gap between domestic gas prices and imported gas prices,” he said.
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He also disclosed that Egypt owes Energean more than $200 million, adding that the company recently received $80 million and remains confident in commitments made by the petroleum minister to settle the remaining arrears.
The petroleum ministry did not immediately respond to a request for comment.
Katcharov further noted that natural gas flows from Israel into Egypt have increased, with the pipeline now operating at full capacity.
Despite government pledges to raise output, Egypt’s domestic natural gas production has been declining.
According to data from the Joint Organisations Data Initiative, production fell to 3,431 million cubic metres in November, down from 3,635 million cubic metres in October and 3,692 million cubic metres in November 2024.
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Image Credit: Pipeline & Gas Journal
