Global Arab Network | Egypt: Foreign investments in oil exploration hit $ 16.2 billion

Translate this article to your language:

GANPublications

e-Publications

Add Site to Favorites

Add Page to Favorites

Make Homepage

Share This Page

RSS Feed

--------------------------------------------------------------------------------------------------------------------
| |

Egypt: Foreign investments in oil exploration hit $ 16.2 billion

Global Arab Network - - Gamal Ragay

Saturday, 24 July 2010 21:42

The volume of foreign investments in oil and gas exploration in Egypt hit $16.2 billion in the last fiscal year. Egyptian Minister of Petroleum Sameh Fahmi said 22 agreements have been signed during the two years of global financial crisis with international companies working in the field of oil and gas prospection.

The Minister reiterated keenness to continue efforts to lure more foreign investments to increase gas production to two billion cubic feet of gas and more than 710,000 barrels of oil daily.

According to the 2008 BP Statistical Energy Survey, Egypt produced an average of 709.9 thousand barrels of crude oil per day in 2007, 0.87% of the world total and consumed an average of 651.31 thousand barrels a day of oil in 2007, 0.77% of the world total. The survey reports that Egypt had 2007 natural gas consumption of 32.04 billion cubic metres, 1.09% of the world total and 2007 natural gas production of 46.52 billion cubic metres, 1.57% of the world total. Egypt had 2007 proved natural gas reserves of 2.06 trillion cubic metres, 1.16% of the world total, and proved oil reserves of 4.07 billion barrels at the end of 2007 or 0.32 % of the world's reserves.

The first oil field was discovered in Egypt in 1869 and it came into production in 1910. At this time, Anglo-Egyptian Oilfields (a joint venture between BP and Shell) was the major operator in the area and continued exploration and development until it was nationalised in 1964. In 1962 EGPC was formed and became the major operator in the form of joint ventures with foreign companies.

Energy plays an important role in Egypt's economy with Egypt being a net exporter of oil. Net exports of crude oil and petroleum products have declined in recent years, higher prices on world markets have pushed Egypt's oil revenues upward. The country also began exports of liquefied natural gas (LNG) from its first terminal in January 2005, adding another hard currency revenue stream, which is set to expand in late 2005 with the completion of the second LNG export terminal. The Suez Canal and Sumed Pipeline are strategic routes for Persian Gulf oil shipments, making Egypt important from an oil transit point of view.

Global Arab Network

Add comment

The opinions of the authors in articles published are theirs alone and do not necessarily reflect the views of Global Arab Network
------------------------------------------------------------------------------
Published comments are the opinions of private individuals and do not reflect the views of Global Arab Network