Foreign oil firms’ Egypt investments rise to $8.1bn in FY2017

Foreign oil firms’ investments in Egypt climbed to $8.1 billion during the financial year 2016/2017, Egypt’s Petroleum Minister Tarek El-Molla told Reuters on Wednesday.

Investments earlier stood at $6.6 billion during the financial year 2015/2016, El-Molla noted.

“The foreign partners spent $8.1 billion in exploration and development operations in Egypt during 2016-2017, compared to $6.6 billion in 2015-2016,” El-Molla said.

The oil ministry said in June that Egypt had reduced arrears owed to foreign oil companies to $2.3 billion.

Cairo has pledged to eliminate the arrears by June 2019 and not accumulate more, part of its drive to draw new foreign investment to an energy sector that is attracting interest after several major gas discoveries.

Once an energy exporter, Egypt has turned into a net importer in recent years, squeezed by declining production and increasing consumption.

Source: Reuters Africa