CAIRO - 21 February 2024: Egypt aims to increase foreign investments in the oil and gas sector by approximately 25 percent in the next fiscal year 2024/2025, reaching $7.5 billion, up from the expected $6 billion in the current fiscal year, Minister of Petroleum and Mineral Resources, Tarek El Molla told Asharq Bloomberg.
Foreign investments in the sector reached $5.6 billion in 2022/2023, compared to $4.7 billion in prior year.
On the Egyptian gas front, El Molla, on the sidelines of the Egypt Petroleum Show "EGYPS 2024," stated that Egypt's production has currently dropped to 5.5 billion cubic feet due to field and well aging.
He added that Egypt is trying to contain this decline at a time when geopolitical events have negatively affected some new exploration activities.
He explained that the volume of natural gas exports this winter ranges between 3 and 4 shipments monthly, and there will be no exports in the summer to meet the needs of the local market amid rising temperatures.
On another note, Dragon Oil, a fully-owned exploration, development, and production company by the National Petroleum Company "ENOC," plans to invest $500 million in Egypt this year to drill new wells and maintain a production rate of 61,000 barrels of oil per day, according to Ali Al Jarwan, the company's CEO. He added that his company increased production from the North Safa field in the Gulf of Suez region to 6,000 barrels of oil per day this year.
The company aims to increase production by 33 percent to reach 8,000 barrels next year. Dragon Oil acquired 100 percent of BP Egypt's rights in a deal valued at $850 million in 2020, becoming a partner with the Egyptian General Petroleum Corporation in all oil production and exploration concessions in the Gulf of Suez, according to Asharq Bloomberg.
Meanwhile, the American energy group "IPR" seeks to inject investments worth $250 million in Egypt during the current and next years, especially since its receivables from the Petroleum Authority are relatively low, as the company's collection rate has been high in the past period, according to Mahmoud Dabbous, the founder and CEO of the group. He pointed out that his company relies on self-financing for 60 percent of its projects, while the remaining percentage comes from bank loans.
Energean Company also affirmed its intention to continue investing in the Egyptian oil and gas sector despite the company's accumulating dues in Egypt, according to CEO Matheus Rigas, who emphasized the company's understanding of the difficulties facing the country. He stated that the company is injecting $250 million in investments in the Abu Qir field, in addition to the production of the North Maria and North Edko fields reaching over 150 million cubic feet per day.
The company continues its operations in partnership with Eni to drill the Orion well north of Egypt, and the results of the exploration operations will be announced in the coming weeks.
On Monday, Egypt’s President Abdel Fattah El Sisi witnessed the inauguration of the seventh edition of Egypt Energy Show (EGYPES) 2024 at Al Manara International Conference Center in New Cairo.
The first two days of EGYPS 2024 included the launch of the strategic conference with the participation of ministers and leaders of the energy industry and CEOs of major global energy, oil, and gas companies.
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