Govern­ment seeks to in­crease pe­tro­leum pro­duc­tion, re­duce sub­si­dies to cover costs of pro­vid­ing oil prod­ucts

The Daily News Egypt - - News - By Ahmed Is­mail

Min­is­ter of Pe­tro­leum and Min­eral Re­sources Tarek El-Molla said that the govern­ment is seek­ing to re­cover the costs of pro­vid­ing pe­tro­leum prod­ucts in the lo­cal mar­ket. This will take place through in­creas­ing the pro­duc­tion rates of raw pe­tro­leum, as well as continuing to re­duce sub­si­dies on pe­tro­leum prod­ucts.

Ac­cord­ing to El-Molla, petrol con­sump­tion de­clined by 3% dur­ing the first nine months of this year, com­pared to the same pe­riod of the past fis­cal year. Ad­di­tion­ally, diesel con­sump­tion de­clined by 6%, while mazut pro­duc­tion de­clined by 33%.

El-Molla said that the petroleum­re­lated com­pa­nies that the govern­ment plans to list on the EGX will not all be in the sec­tor of pe­tro­leum. How­ever, they might be from the share of share­hold­ers in those com­pa­nies. He noted that the govern­ment is cur­rently un­der­tak­ing a due dili­gence ex­am­i­na­tion for these com­pa­nies in prepa­ra­tion for the of­fer­ing process.

The pe­tro­leum sub­si­dies bill dur­ing the first nine months of this year was es­ti­mated to be EGP 84bn, ac­cord­ing to El-Molla.

“The Min­istry of Pe­tro­leum is cur­rently work­ing to pre­pare a strat­egy for the Egyp­tian min­ing sec­tor through con­tract­ing with a global con­sult­ing firm,” El-Molla added. It is ex­pected that the ini­tial study of the strat­egy will be com­pleted by June, ac­cord­ing to the min­is­ter.

El-Molla noted that his min­istry aims to of­fer a ten­der for oil and gas ex­plo­ration in the Red Sea by the end of this year.“Within the few up­com­ing months, we will also be launch­ing a ten­der for gas and oil and ex­plo­ration in the Mediter­ranean; specif­i­cally, in 10 or 11 ar­eas there,” he added.

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