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Egypt: how the state takes its share of crude oil

Last checked: 20 October 2026 · Levies by country

Egypt takes its share of crude through production sharing concessions signed by the state company EGPC 3. Each concession is granted by a special law passed by Parliament 3. The foreign contractor recovers costs from a capped share of output and takes a stated share of the remaining profit oil. EGPC keeps the rest and pays the contractor's income tax out of its own share 1. APA's 2021 merged concession has a 40% cost recovery limit and a 30% profit share 1.
State oil company
Egyptian General Petroleum Corporation (EGPC) 3
Contract model
Concession agreements in the form of production sharing agreements 3
Approval
Special law passed by Parliament 3
Contractor income tax
Paid by EGPC out of its production share 1
Cost recovery limit, APA merged concession
40% 1
Contractor profit share, APA merged concession
30% 1
Arrears to foreign partners, June 2024
US$6.1 billion 4
Arrears to foreign partners, May 2026
US$440 million 4

Concessions and production sharing

EGPC concludes concession agreements with international oil companies in the form of production sharing agreements, according to the US International Trade Administration 3. Concessions in specific areas are granted by a special law passed by the Egyptian Parliament 3.

Companies must register with EGPC to take part in tenders. EGAS handles natural gas activities 3. Egypt launched a digital bid platform, the Egypt Upstream Gateway, in February 2020 3.

How a barrel is split

APA Corporation describes the terms in its annual report for 2025, a company statement. Under its production sharing contracts, APA is the contractor partner with EGPC and bears the risk and cost of exploration and development 1.

The contractor receives a share of production that represents recovery of the costs it incurred, plus a stated share of production after cost recovery 1.

Income taxes owed by the contractor are paid by EGPC on behalf of the contractor out of EGPC's production entitlement. APA records these taxes as oil and gas revenue and as income tax expense. It says the tax has no economic impact on its Egypt operations 1.

Terms in recent consolidated concessions

APA and Capricorn Energy have each merged several Egyptian concessions into one agreement with new terms 1,2. The table shows the terms they disclosed.

TermAPA merged concession (ratified 2021)Capricorn consolidated concession (2025)
Scope 1,298% of APA's gross acreage and 90% of gross production 1Eight development concessions and one exploration concession 2
Cost recovery 1,2Fixed 40% limit 140% 2
Contractor profit share 1,2Fixed 30% 127% to 29% at Brent of US$60 to US$80 a barrel, liquids below 15,000 barrels per day and gas below 300 million cubic feet per day 2
Gas price 1,2Minimum realized price of US$2.65 per MMBtu 1US$4.25 per MMBtu for incremental gas 2
Bonuses to EGPC 1,2Not stated 1US$10 million at ratification, then US$5 million on each of the first two signing anniversaries 2

Steps to approve a concession

Capricorn Energy said on 18 September 2025, in a company statement, that its consolidation needed an EGPC committee, board approvals, ratification by Parliament and signature of the revised concession 2. APA said its merged concession refreshed development lease terms for 20 years and exploration leases for 5 years 1.

Who buys the crude

APA says its Egyptian crude is sold to third parties in the export market, or to EGPC when EGPC calls on it to supply domestic demand 1. APA reported Egypt oil production of 32.0 million barrels in 2025 1.

Arrears to foreign partners

Unpaid dues to foreign oil and gas companies peaked at US$6.1 billion in June 2024, according to government figures reported by Farah Samir of Egyptian Streets on 26 May 2026 4. They fell to US$1.3 billion in March 2026, US$714 million in April 2026 and US$440 million in May 2026 4.

Prime Minister Mostafa Madbouly said on 25 May 2026 that Egypt expected to settle all remaining dues by 10 June 2026, as reported by Egyptian Streets 4. Capricorn reported Egypt receivables of US$182 million in September 2025 2.

Earlier figures conflict. The US International Trade Administration guide, 2021 edition, says arrears fell to US$1.2 billion from US$6.3 billion as of June 2018. The same guide says arrears fell to US$850 million by the end of June 2020 3.

Common questions

Who pays income tax on oil profits in Egypt?

EGPC pays the contractor's income tax on its behalf, out of EGPC's own production share, according to APA 1.

How much cost oil can a contractor recover in Egypt?

APA's merged concession and Capricorn's consolidated concession both set cost recovery at 40% 1,2.

Who approves oil concessions in Egypt?

Parliament grants each concession by a special law 3. Capricorn said its consolidation needed EGPC board approval and parliamentary ratification 2.

Has Egypt paid its arrears to oil companies?

Arrears fell to US$440 million in May 2026. The Prime Minister said they would be cleared by 10 June 2026, as reported by Egyptian Streets 4.

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Sources

  1. APA Corporation, company statement: Form 10-K for the fiscal year ended 31 December 2025 (2026)
  2. Capricorn Energy, company statement: Half-Year 2025 Results Presentation (18 September 2025)
  3. US International Trade Administration: Egypt Oil and Gas, Energy Resource Guide (2021 edition)
  4. Egyptian Streets: Egypt to Clear Foreign Oil and Gas Dues by 10 June, PM, by Farah Samir (26 May 2026)

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