Egypt's oil production decline to 4.3B cubic feet per day in January 2025

CAIRO – 24 March 2025: Egypt’s natural gas production has seen a significant drop of 20 percent year-on-year, falling to 4.3 billion cubic feet per day (bcf/d) in January. This marks the lowest production level since December 2016, as reported by the Middle East Economic Survey (Mees). The data suggests that this downward trend shows no signs of easing.

In the West Delta region, gas production dropped by 3 percent month-on-month in January, reaching 3.1 bcf/d—its lowest point in eight years—despite the activation of additional wells from Shell’s West Delta Deep Marine project earlier in the month. Meanwhile, production in the Western Desert has remained flat at 763 million cubic feet per day (mcf/d), a multi-decade low, and the Nile Delta region saw a significant drop to 332 mcf/d, the lowest level since mid-2014.

The Egyptian government had set ambitious targets for 2025, with reports indicating a plan to increase domestic gas production by 30 percent, aiming to reach 6 bcf/d by year-end. However, current trends suggest the country may struggle to achieve these goals.

Efforts to increase production are underway, though they may not be enough to reverse the declines. BP recently began production from the second phase of its Raven natural gas field in the North Alexandria offshore concession, which is expected to contribute 220 bcf/d of gas. However, Mees has described this projection as “optimistic.”

Dana Gas, a key player in the Nile Delta, is investing $100 million into developing new production capacity, including drilling 11 new wells. This project is expected to add 80 bcf/d of gas reserves. Despite these efforts, Dana Gas’s production has halved to 80 mcf/d over the past seven years.

US oil producer Apache remains hopeful for gas output improvements, having secured higher prices for its new production. The company is launching a $60 million drilling program in the Western Desert, aiming to boost gas production by 80 mcf/d starting this month.

However, the outlook for Egypt’s oil production remains grim. National oil output fell to 523,000 barrels per day (bbl/d) in January, the lowest in over 40 years. The Western Desert, which accounts for nearly half of the country’s oil production, saw a 2 percent month-on-month decrease, dropping to 274,000 bbl/d.