Foreign partners’ investments in the oil sector amount to approximately $7bn for oil and gas research and exploration and development work for concession areas.
In statements made to Daily News Egypt, a prominent official at the Ministry of Petroleum claimed that foreign companies operating in the field of oil and gas research and exploration are working to increase their investments in the petroleum sector and raise production rates.
Foreign companies’ investments increased by approximately $7.5bn in 2016, compared to $7bn allocated to the initial plan which was agreed upon in 2015.
The official said there are 108 joint companies operating between the petroleum sector and foreign, Egyptian, and Arab companies, in addition to 62 research and exploration companies from different countries. This reflects the strength of economic relations with companies working in Egypt and sends a message of confidence to the petroleum sector.
The Ministry of Petroleum set out a list of priorities to strengthen the investment climate and grant confidence to foreign partners in light of the economic feasibility of and high investment in the oil sector, thanks to the great potential enjoyed by Egypt’s petroleum sector.
The Ministry of Petroleum expects investments worth $16bn in the fields of research, exploration, development, refinement, petrochemicals, infrastructure, pipeline extensions, and delivering natural gas to households throughout 2016.
The ministry aims to offer international bids and sign petroleum agreements and amendments in the fields of research, exploration, and development through investments worth $4.5bn. The ministry is also working to implement development and production projects through investments worth approximately $1.2bn.
The Ministry of Petroleum offered three new global bids for petroleum and gas research to the Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Company (EGAS), and the South Valley Holding Company for Petroleum in both land and marine areas.
The plan includes linking eight oil projects to the national network for gas production and adding 250m cubic feet of gas per day through investments worth approximately $1.2bn. The goal is to have 19 wells to begin producing 325m cubic feet of gas per day during 2016.
There are also plans to add a line to bring average natural gas production up to 4.5bn cubic feet per day in 2016, compared to the current 4.1bn. There will be no increase in crude oil and condensate production, which will stabilise at 695,000 barrels per day.
The ministry’s plan also involves signing 25 new petroleum agreements and amendments and utilising investments worth approximately $4.5bn to intensify research and exploration and develop newly discovered fields more quickly. This will also include setting out a production map to expand reserves and local production of oil and gas to meet the needs of the domestic market.
It aims to implement projects to refine crude oil and increase production for petroleum derivatives for a value of $7.3bn, in addition to infrastructure projects worth EGP 548m.
The ministry said the plan includes expanding gas pipelines at a cost of EGP 3.542bn and delivering natural gas to homes and converting cars to operate on gas at a cost of EGP 4.20bn.