Egypt aims to increase oil exports revenues to $8.5bn in FY 2019/20

The Ministry of Petroleum aims to increase the revenues of Egypt’s oil exports by the end of the current fiscal year (FY) to $8.5bn compared to $7.7bn FY 2018/19.

Senior government sources told Daily News Egypt that the total quantities targeted for exports of crude oil, gas, petroleum products, and petrochemicals amount to 17.7m tonnes.

They added that the value of exports includes the foreign partner’s share of crude oil by calculating the average price of the Gulf of Suez crude oil at $55 per barrel due to the lower prices of crude oil and petroleum products.

The Egyptian Natural Gas Holding Company (EGAS) has started to increase the amount of natural gas exported through the Idku liquefaction plant to about 1bn cubic feet per day (scf/day) compared to 300m scf/day last month.

A source in the oil sector said that the increase was due to the stability of gas prices in international markets after facing a strong decline in importer bids due to the increase in supply.

He pointed out that Egypt’s total exports of natural gas rose to 1.29bn scf/day during the current FY.

The source added that Egypt’s production of natural gas rose to 7bn scf/day during the current FY,up from 6.5bn scf/day in the last FY.

He said that the highest concentration of crude oil is exported to the world markets through Sumed company’s warehouses.

According to government sources, investment in the oil and natural gas sector in the current FY was estimated at $10.6bn, up 15% from the previous FY.

The sources said that the foreign partners’ investments account for the largest share by about $10bn equivalent to 94.3% of total investments in the oil sector during 2019/2020.