El Molla: IOCs Invested $8.5b in Egypt

The Egyptian Minister of Petroleum, Tarek El Molla discussed Egypt’s dues to international oil companies (IOCs), foreign investments in the country’s energy industry, and regional partnerships in the petroleum sector in an interview with Daily News Egypt.

El Molla stated that parts of Egypt’s dues are scheduled to be repaid before the end of 2016 although he could not predict the amount that would be given by the Central Bank of Egypt (CBE) and the Ministry of Finance. The amounts of dues have been assessed at $3.4b in the last fiscal year.

Further, the minister noted IOCs’ investments in the country’s oil and gas industry amounted to estimated $8.5b during the fiscal year 2016/2017. The investments were earmarked for exploration and development in the petroleum and natural gas sectors.

In addition, the oil minister noted that Egypt seeks to pave the way for the petroleum sector to find new sources of oil and gas outside Egypt in order to increase the country’s hydrocarbon reserves.

In line with the strategic plan, the Egyptian General Petroleum Corporation (EGPC) and the Kuwait Energy Company have signed an agreement to explore the Kuwaiti Siba concession area, south of Al-Basra, during September. Under the agreement, the Kuwait Energy Company will cede 10% of its shares in the concession area 9 to EGPC.

Meanwhile, Egypt has obtained gasoline, diesel, and fuel oil shipments for roughly $860m during May, June, and July, as part of the agreement with Saudi Aramco to meet Egypt’s fuel needs over five years.