$10bn investments in petroleum exploration, production in FY 2018/19: El-Molla

Mohamed Samir
2 Min Read

Minister of Petroleum, Tarek El-Molla, revealed that $10bn in new investments will be injected in petroleum exploration and production during the current fiscal year 2018/19.

El-Molla said in a press statement on Saturday, that the turnout by major international companies in the ministry’s oil and gas exploration bids represents a clear message of the confidence of foreign companies in Egypt’s investment climate.

He added that the international bid of the Egyptian General Petroleum Corporation for the year 2018 for oil and gas exploration in 11 regions in the Gulf of Suez and Eastern and the Western Desert has been closed, and the bids are being evaluated to announce the winning companies.

Moreover, El-Molla pointed out that preparations are underway to launch an international bid for oil and gas exploration in the Red Sea region for the first time at the end of this year.

A source in the oil and gas sector told Daily News Egypt that the Red Sea international bid will be under a new form of agreements,  offering more incentives, such as, increasing the partner’s share, reducing the expense recovery period, and setting the gas price after the commercial discovery, according to the size of the investments required for development, with the possibility of reviewing this price periodically.

Egypt currently pays $2.65 to foreign partners for every million BTU in most of its agreements, except for some areas of deep water in the Mediterranean.

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Mohamed Samir Khedr is an economic and political journalist, analyst, and editor specializing in geopolitical conflicts in the Middle East, Africa, and the Eastern Mediterranean. For the past decade, he has covered Egypt's and the MENA region's financial, business, and geopolitical updates. Currently, he is the Executive Editor of the Daily News Egypt, where he leads a team of journalists in producing high-quality, in-depth reporting and analysis on the region's most pressing issues. His work has been featured in leading international publications. Samir is a highly respected expert on the Middle East and Africa, and his insights are regularly sought by policymakers, academics, and business leaders. He is a passionate advocate for independent journalism and a strong believer in the power of storytelling to inform and inspire. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
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