Foreign oil companies operating in Egypt recorded investments of about $8.1bn in the fiscal year 2016/2017, up from $6.6bn in the fiscal year 2015/2016.
These figures indicate an increase in investments by 22.7% during the 2016/2017 fiscal year, which ended on 30 June 2017.
Minister of Petroleum Tarek El Molla said that foreign partners spent $8.1bn in exploration and development in Egypt in 20167/2017, up from $6.6bn in 2015/2016.
During the second half of 2016/2017, Egypt paid $2.2bn of the arrears owed to the foreign oil companies working in Egypt, which stimulated these companies to increase investments and accelerate the development of the Zohr gas field of Eni to begin production of 1 billion cubic feet of gas per day before the end of 2017.
The Zohr field is estimated to contain reserves of about 30 trillion cubic feet of gas.
Egypt expects the field will start production before the end of this year to add about 500 million cubic feet of gas per day to the country’s production capacity.
On average, Egypt produces about 5.2 billion cubic feet per day versus average consumption of 6 billion cubic feet, marking a deficit of 800 million cubic feet per day, which Egypt imports from abroad.
The Ministry of Petroleum plans to stop imports and achieve self-sufficiency by the end of 2018.
Egypt expects investments of oil companies to exceed $10bn this fiscal year.
Foreign oil companies’ dues owed by the government amounted to $2.3bn at the end of June, according to El Molla.
Among the foreign companies engaged in the exploration and production of oil and gas in Egypt are BP, Shell, and Eni.
Foreign companies operating in Egypt say their companies are injecting investments into the oil sector and recovering the money they have spent by getting a percentage of production from oil and gas fields.