Egypt produced an average of 626,000 barrels per day (b/d) of crude oil and condensates in fiscal year (FY) 2016/2017, according to the Head of the Egyptian General Petroleum Corporation (EGPC), Abdel Ezz El Regal, Egypt Oil & Gas reports.

New discoveries enhanced Egypt’s production capability, Ezz El Regal said, noting that 41 new oil and gas sites were discovered in FY 2016/2017. The discoveries consisted of 28 new crude oil sites and 13 new natural gas sites.

Production from the Western Desert comprised 55% of the total production and it is projected to rise to 670,000 b/d in FY 2017/2018, according to Ezz El Regal. He noted that EGPC signed five exploration and production agreements (E&P) with a total investment value of $625 million. Of these five agreements, two are new agreements and three are amendments to previous contacts. Altogether, Ezz El Regal said, international oil companies (IOCs) invested $5 billion in Egypt for E&P activities during FY 2016/2017.

EGPC also commenced operations outside of Egypt, acquiring a 10% share in Block 9 of Iraq’s Faihaa oilfield and is in the process of acquiring a 15% share in Iraq’s Siba oilfield.

Ezz El Regal’s comments were made during the company’s board meeting. The meeting was chaired the Minister of Petroleum and Natural Resources, Tarek El Molla.

In order to meet the country’s energy needs, Egypt acquired or produced 78 million tons of petroleum products, El Molla noted, adding that 25,000 tons of crude oil and condensates were refined domestically.

The government spent EGP 122.4 billion on energy subsidies during FY 2016/2017, expending EGP 204.3 billion to secure energy supplies and then selling these products domestically for EGP 81.9 billion, according to El Molla.

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