An oil company official said the government should repay full dues to foreign partners and approve gas price amendments that have been agreed upon to stimulate investments in the sector.
Egypt will face stability in oil and gas production rates during fiscal year 2015/2016 as a result of a number of companies reducing their investments, said the official. He added that most of the wells to enter production will only compensate the natural decline rate of gas production.
Average daily production of crude will reach 670,000 barrels, whilst average production of natural gas will reach 4.7bn cubic feet per day. Average production of Butane gas will be estimated at 74,000 barrels, according to the official’s expectations.
The official added that this month’s Economic Summit will attract new investments to the oil sector, particularly refining, petrochemicals and mineral wealth, but will not affect Egypt’s oil and gas production.
He stressed that the government should speed up the launch of an oil company with the expertise of Egyptian engineers, efficient enough to work in oil and gas research and exploration. He added that the foreign companies’ monopoly is allowing them to control the country’s production.
The Ministry of Petroleum should ensure plenty of research and exploration bidding within the upcoming years, as well as encourage foreign companies to speed up their research and development processes in order to increase gas and oil production rates.