Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla revealed that work is underway to implement three oil refining projects with investments of $5.7bn. The projects will contribute to Egypt achieving self-sufficiency in petroleum products by 2023.
He also reviewed a number of positive indicators in the country’s oil and gas sector that have taken place during the novel coronavirus (COVID-19) pandemic.
El Molla noted that 14 new agreements were signed with major international companies between March and October, to expand Egypt’s natural gas and petroleum exploration activities. This expansion has taken place in a number of new and promising areas.
The minister said that despite the recent challenges of the pandemic, President Abdel Fattah Al-Sisi recently inaugurated two of the largest petroleum refining projects in Egypt: the Egyptian Refining Company’s (ERC) facility in Mostorod and new extensions at the Alexandria National Refining and Petrochemicals Company (ANRPC), which are worth a total investment of $4.5bn.
El Molla’s remarks came during his speech at the week-long virtual “Egypt’s green Economy” programme that is being hosted by the British Egyptian Business Association (BEBA), and the Egyptian-British Chamber of Commerce (EBCC).
He confirmed that the economic reform programme, adopted by the Egyptian government six years ago, has helped put the country’s economy on the right path.
It has also preserved its progress, despite having to face the severe effects of the coronavirus pandemic, which has affected the economies of many countries worldwide.
El Molla said that President Al-Sisi’s strong support and the government’s efforts have contributed to leading Egypt towards reaching the right balance between containing the pandemic and development priorities.
The Minister said that, during 2020, the oil and gas industry have been exposed to the fiercest challenges and shocks in its history in light of these unprecedented global circumstances.
He also said that Egypt’s oil and gas sector has proceeded steadily towards achieving its goals and investment plans, despite these circumstances. This progress reflects the efficiency and sustainability of the strategic plans for this vital sector and the effectiveness of the bold reforms that have been implemented to develop and modernise it in recent years.
He stressed that local industry’s successes in 2020 come as a continuation of achievements during the past six years. Foremost among these are the self-sufficiency in gas, through the implementation of many major gas development and production projects in the Mediterranean. These have seen investments of more than $30bn during the past five years.
It has also transformed Egypt into one of the largest gas producers in the region, restored the confidence of major international companies and attracted new players and investors in the field of oil and gas in the Egyptian market.
He pointed out that the ministry is about to launch the “Egypt Gate for Research and Exploration”, which is the first electronic platform for geological data. The platform aims to promote Egypt’s oil and gas auctions online.
El Molla stressed that oil and gas sector reforms have been fruitful for the Egyptian economy in terms of providing energy supplies, and attracting more huge investments during the period from 2014 to 2020.
He sent a message to international companies and investors in the sector that Egypt welcomes everyone to invest in this promising sector.
The minister stated that the diversity of international companies present in Egypt is in everyone’s interests, and stressed the ministry’s interest in developing young professionals and giving them the opportunity to take responsibility.
The minister concluded by stressing the importance and depth of the joint Egyptian-British relations, and that Egypt and Britain are strategic partners, expressing his aspiration to strengthen these relations, especially in the field of oil and gas.