$20bn di­rect in­vest­ments in petroleum sec­tor over next 3 years

The Daily News Egypt - - News - By Mo­hamed Adel

The Min­istry of Petroleum and Min­eral Re­sources aims to at­tract about $20bn in for­eign di­rect in­vest­ment (FDIs) in the field of re­search, de­vel­op­ment, and pro­duc­tion of oil and gas from the var­i­ous con­ces­sion ar­eas, dur­ing the next three years.

A se­nior source in the oil sec­tor told Daily News Egypt that the min­istry is seek­ing to in­crease nat­u­ral gas pro­duc­tion rates to 8bn cu­bic feet per day by 2021, com­pared to the cur­rent 6.2bn feet, in or­der to pro­vide the full needs of the lo­cal mar­ket, and ex­port sur­plus to global mar­kets through the EDCO and Dami­etta liq­ue­fac­tion plants.

He added that the min­istry has de­vel­oped a pro­gramme with com­pa­nies to main­tain the cur­rent crude oil and con­den­sate pro­duc­tion rates un­til 2021, while com­pen­sat­ing for the rates of nat­u­ral de­cline of fields’ pro­duc­tiv­ity.

The source ex­plained that the min­istry suc­ceeded in in­creas­ing the rates of crude oil pro­duc­tion by about 4.3% to the cur­rent 657,000 bar­rels per day, com­pared to 630,000 bar­rels per day a year ago.

He pointed out the de­cline of Egypt’s re­serves of crude oil to about 3bn bar­rels, com­pared to about 4bn in 2015, a de­cline of 25%, as a re­sult of the fail­ure to achieve sig­nif­i­cant oil dis­cov­er­ies dur­ing the past three years.

Yet, he noted that gas re­serves in Egypt have in­creased to about 90tn cu­bic feet per day, com­pared to 60tn feet in 2015, an in­crease of 50%, af­ter link­ing new gas dis­cov­er­ies such as Nour, Zohr, and Atol to pro­duc­tion.

The source said that the min­istry’s strat­egy con­sists of three main axes: in­creas­ing and di­ver­si­fy­ing en­ergy sup­ply and de­mand man­age­ment, as well as achiev­ing fi­nan­cial sus­tain­abil­ity by ad­dress­ing debt and ar­rears, re­form­ing the sub­sidy sys­tem, and deal­ing with do­mes­tic debts.

He re­ferred to im­prov­ing the man­age­ment of the petroleum sec­tor, struc­tural re­forms and en­cour­ag­ing pri­vate sec­tor in­vest­ments through sup­port­ing leg­is­la­tion such as the Gas Mar­ket Reg­u­la­tion Law.

The Min­is­ter of Petroleum con­firmed that the sec­tor suc­ceeded in over­com­ing all the crises and chal­lenges faced dur­ing the last pe­riod.

It is noteworthy that there is a com­mit­tee formed by a de­ci­sion from the Prime Min­is­ter, headed by the Min­is­ter of Petroleum, which in­cludes a num­ber of min­istries con­cerned with the trans­for­ma­tion of Egypt into a Lo­gis­tic Cen­tre, who are con­cerned with this na­tional project, and pro­vide all the sup­port for its im­ple­men­ta­tion.

Egypt has many el­e­ments that en­able it to trans­form it­self into a re­gional cen­tre for en­ergy trad­ing.The ge­o­graph­i­cal lo­ca­tion of the en­er­gyrich coun­tries and con­sumer coun­tries is an im­por­tant ele­ment which can­not be over­looked, but it is not enough, and we can sup­port it by es­tab­lish­ing a strong in­fra­struc­ture in the oil and gas field.

The min­istry suc­ceeded in in­creas­ing the rates of crude oil pro­duc­tion by about 4.3% to the cur­rent 657,000 bar­rels per day

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