$10bn in­vest­ments in petroleum ex­plo­ration, pro­duc­tion in FY 2018/19: El-Molla

The Daily News Egypt - - Front Page -

Min­is­ter of Petroleum, Tarek El-Molla, re­vealed that $10bn in new in­vest­ments will be in­jected in petroleum ex­plo­ration and pro­duc­tion dur­ing the cur­rent fiscal year 2018/19.

El-Molla said in a press state­ment on Satur­day, that the turnout by ma­jor in­ter­na­tional com­pa­nies in the min­istry’s oil and gas ex­plo­ration bids rep­re­sents a clear mes­sage of the con­fi­dence of for­eign com­pa­nies in Egypt’s in­vest­ment cli­mate.

He added that the in­ter­na­tional bid of the Egyp­tian Gen­eral Petroleum Cor­po­ra­tion for the year 2018 for oil and gas ex­plo­ration in 11 re­gions in the Gulf of Suez and Eastern and the Western Desert has been closed, and the bids are be­ing eval­u­ated to an­nounce the win­ning com­pa­nies.

More­over, El-Molla pointed out that prepa­ra­tions are un­der­way to launch an in­ter­na­tional bid for oil and gas ex­plo­ration in the Red Sea re­gion for the first time at the end of this year.

A source in the oil and gas sec­tor told Daily News Egypt that the Red Sea in­ter­na­tional bid will be un­der a new form of agree­ments, of­fer­ing more in­cen­tives, such as, in­creas­ing the part­ner’s share, re­duc­ing the ex­pense re­cov­ery pe­riod, and set­ting the gas price af­ter the com­mer­cial dis­cov­ery, ac­cord­ing to the size of the in­vest­ments re­quired for de­vel­op­ment, with the pos­si­bil­ity of re­view­ing this price pe­ri­od­i­cally.

Egypt cur­rently pays $2.65 to for­eign part­ners for every mil­lion BTU in most of its agree­ments, ex­cept for some ar­eas of deep wa­ter in the Mediter­ranean.

Min­is­ter of Petroleum,Tarek El-Molla

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