For­eign part­ners’ in­vest­ments in 2017/18 at $10bn: Min­is­ter of Pe­tro­leum

Com­mit­ment to pay the dues of part­ners led to in­crease their in­vest­ments in the oil sec­tor, ac­cord­ing to El Molla

The Daily News Egypt - - Front Page - By Mo­hamed Adel

The in­vest­ments of for­eign part­ners were es­ti­mated at $10bn dur­ing the cur­rent fis­cal year 2017/2018, in the ac­tiv­i­ties of oil and gas ex­plo­ration and field de­vel­op­ment and oper­a­tion.

Min­is­ter of Pe­tro­leum and Min­eral Re­sources Tarek El Molla told Daily News Egypt that for­eign part­ners in the oil sec­tor have raised the planned in­vest­ments in the oil sec­tor, af­ter Egypt’s com­mit­ment to pay their dues reg­u­larly.

He said that the oil sec­tor paid for­eign part­ners of the in­ter­na­tional oil com­pa­nies op­er­at­ing in Egypt new pay­ments of $2.2bn re­cently, from their ac­cu­mu­lated ar­rears from pre­vi­ous pe­ri­ods, thus re­duc­ing the debt to about $2.3bn, the low­est level since 2013.

El Molla ex­plained that the for­eign part­ners’ en­ti­tle­ments amounted to about $6.3bn. The com­mit­ment to pay the cur­rent re­ceiv­ables bill reg­u­larly did not re­sult in the ac­cu­mu­la­tion of any new re­ceiv­ables.

He pointed out that the ini­tia­tives of pay­ment and re­duc­tion of re­ceiv­ables had a pos­i­tive re­flec­tion on the in­creas­ing in­vest­ments in Egypt in oil and gas ex­plo­ration and the de­vel­op­ment of dis­cov­ered fields to in­crease Egypt’s crude oil and gas pro­duc­tion.

The min­is­ter stressed that there are in­ten­sive ef­forts ex­erted by the min­istry to in­crease pro­duc­tion us­ing ad­vanced meth­ods and tech­nolo­gies to re­duce the nat­u­ral de­cline in the wells and in­crease the pro­duc­tiv­ity of the cur­rent wells, and the pe­tro­leum sec­tor is im­ple­ment­ing plans to in­crease the pro­duc­tion of pe­tro­leum wealth.

He added that the oil sec­tor is con­tin­u­ing its poli­cies to launch in­ter­na­tional bids for re­search and ex­plo­ration and sign­ing new oil agree­ments with in­ter­na­tional com­pa­nies, which served as the real cat­a­lyst that en­riched the oil ac­tiv­ity and gave strong pushes to in­crease pro­duc­tion.

More­over, El Molla said that the oil sec­tor signed 82 ex­plo­ration agree­ments with a min­i­mum in­vest­ment of about $15.4bn, which are ex­pected to fruit some new dis­cov­er­ies, sup­port­ing the goal of in­creas­ing pro­duc­tion and re­serves of pe­tro­leum wealth.

He pointed out that ef­forts are also be­ing in­ten­si­fied in co­op­er­a­tion with for­eign part­ners to carry out projects to de­velop large gas dis­cov­er­ies in the deep wa­ters of the Mediter­ranean Sea and the Nile Delta to con­trib­ute to the planned in­crease in gas pro­duc­tion.

He noted that Egypt has in­vest­ment op­por­tu­ni­ties in the oil sec­tor, adding that the min­istry is work­ing on pre­par­ing and of­fer­ing them in the best way to in­vestors.

Min­is­ter of Pe­tro­leum and Min­eral Re­sources Tarek El-Mulla

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