While the talk in Egypt in recent years has been of giant offshore gas projects, output from the country’s long-dominant Gulf of Suez oil province has yet to stabilize after 2015’s capex collapse.

Output from the Gulf of Suez region, long Egypt’s oil heartland, slumped from 313,000 b/d, 47% of the country’s total in 2010, to just 253,000 b/d for the first nine months of 2017 (see chart 1).

Output has been below 40% of the Egyptian total – a level never before...