The Egypt Kuwait Holding (EKH) company announced the purchase of a gas field from a French company north of Suez, according to a cabinet statement on Sunday evening.
Cabinet Spokesperson Hossam Al-Qaweesh said that during a meeting with Prime Minister Ibrahim Mehleb on Sunday, the company confirmed it increase investments during the coming phase and expanding into new areas. The company also added that it has plans to implement projects to produce electricity from new and renewable energy.
EKH management did not disclose details about the field it purchased or its value, but said it will work to increase the amount of gas produced from that field.
Mehleb, according to the cabinet statement, said: “The government is making every effort to remove all obstacles facing investors and is aware of their right to a favourable investment climate that will bring them profits.”
“President Abdel Fattah Al-Sisi is always keen to encourage investment and the private sector, what with its large role in providing employment opportunities for the youth and reducing the phenomenon of unemployment,” he added.
Last month, EKH said that Mehleb intervened in a problem faced by them and 21 other IPO companies [KD1] for which issuance of approvals to increase capital were delayed for four months. The company said that “the prime minister solved the problem in four hours”.
EKH’s shares have increased following its capital increase worth $34.1m.
EKH Investor Relations Director Haitham Abdel Moneim said in an interview recently that the energy sector plays a key role in the company’s growth plan. The company said it plans to spend about $500m in new investments during 2015 so that the company’s total investment portfolio increases to $2.5bn.
Abdel Moneim said that the new investments will focus on expanding stakes in oil companies or oil wells in Egypt and doubling production of the Al-Sabriya plant, which is owned by EKH. There are also plans to expand into the field of natural gas delivery for homes and commercial purposes.
The energy sector contributes to between 40%-45% of company profits and revenues, he added.
Abdel Moneim pointed out that through one of its subsidiaries, EKH owns around 5% of the largest oil field in South Sudan and East Africa. He added that the company is working to acquire stakes in wells that are already producing oil in Egypt.
EKH has approximately 20 subsidiary companies operating in the fields of oil, gas, insurance, fertilisers, telecommunications, construction, financial investments, amongst other areas.
