Egypt's Crude Oil Output Reaches Nearly Two-Year High

Egypt's crude oil production climbed to its highest level in nearly two years, Petroleum and Mineral Resources Minister Karim Badawi announced, highlighting what the government describes as a successful strategy to revive upstream investment while expanding the country's refining capacity and petroleum exports.

Speaking during an inspection tour of modernization projects at the Alexandria Petroleum Refinery, Badawi said higher crude production reflects the ministry's efforts to restore investor confidence by settling outstanding payments owed to international partners, encouraging fresh investment in exploration, field development, and production activities.

The minister said increased output of crude oil and condensates, coupled with larger volumes of domestic and imported crude being processed at Egyptian refineries, has fueled a significant expansion in the refining sector during 2026. The strategy aims to maximize the value of crude by converting it into higher-value refined petroleum products while utilizing the country's extensive refining infrastructure.

According to Badawi, refinery utilization rates have risen to approximately 80% this year, strengthening domestic fuel supplies, reducing reliance on imports, and creating larger export surpluses for refined petroleum products.

The improvement in refining operations has translated into stronger export performance. Egypt exported more than 2.3 million metric tons of refined petroleum products during the first half of 2026—matching the country's total exports for all of 2025. The ministry expects exports to increase further to 2.5 million tons in the second half of the year.

Between January and June 2026, exports of petroleum products, including jet fuel, naphtha, paraffin wax, and vacuum gas oil, generated approximately $2.3 billion in export revenues, underscoring the growing contribution of downstream operations to Egypt's energy sector.

Badawi also outlined the results of refinery efficiency programs overseen by the Egyptian General Petroleum Corporation (EGPC), which have increased production of gasoline, jet fuel, and diesel while improving operational performance across several refining facilities.

Among the key achievements, the gasoline complex at the Mostorod refinery, operated by Cairo Petroleum Refining Company, has increased monthly production by approximately 45,000 tons of gasoline and 40,000 tons of jet fuel. 

Meanwhile, ANRPC is operating at more than 110% of its designed capacity, while the Ameriya Petroleum Refining Company has boosted monthly production of 92-octane gasoline by between 10,000 and 15,000 tons. Production improvements have also been implemented at the MIDOR refinery and the lubricants complex operated by Alexandria Petroleum Company.

The minister said closer integration among Egypt's refining companies has become a central element of the sector's strategy, allowing intermediate products to be transferred between facilities for further processing into higher-value fuels and petrochemical feedstocks. 

This approach has increased output of base oils, paraffin waxes, European-standard diesel, aviation fuel, and linear alkylbenzene (LAB), a key raw material used in detergent manufacturing.

Looking ahead, the ministry plans to launch a new package of refinery development projects with total investments and financing estimated at $4.5 billion. The projects are intended to strengthen Egypt's energy security, reduce import costs, and enhance the international competitiveness of the country's petroleum exports.

During his visit, Badawi inspected the modernization of the lubricants complex at the Alexandria Petroleum Company, one of Egypt's oldest refineries, which has been operating for nearly 75 years. He reiterated that operational safety remains the ministry's highest priority across all petroleum facilities.

Company Chairwoman Reham Olfa and engineering teams presented the results of an extensive rehabilitation program that included the complete refurbishment of two boilers that had been in operation for approximately 45 years. The work was carried out entirely by Egyptian engineering teams in cooperation with Cairo Petroleum Refining Company under EGPC's supervision, alongside a comprehensive refinery overhaul and maintenance of production-unit compressors.

According to project officials, the first boiler has already returned to full operation, while work on the second is nearing completion. The rehabilitation cost approximately EGP 150 million, compared with an estimated EGP 2 billion that would have been required to purchase a new boiler, generating substantial capital savings.

The project is also expected to reduce annual operating costs by around EGP 30 million, lower natural gas consumption, extend equipment lifespan, and reduce carbon emissions. Additional upgrades have improved product quality and restored production of several grades of lubricants and waxes, with all work completed without a single workplace accident.

Badawi praised the performance of Egyptian engineers and technicians, describing the project as a successful example of collaboration between national petroleum companies. He said the expertise developed through the rehabilitation program could eventually be exported to support similar industrial projects outside Egypt.

The Alexandria Petroleum Company also reported higher production of asphalt and fuel oil during fiscal year 2025/26, while increasing the supply of intermediate products used in the manufacture of high-value petroleum and petrochemical products, including linear alkylbenzene, premium gasoline, industrial lubricants, waxes, and specialty solvents.