Minister of Petroleum Speech at the American Chamber of Commerce

On his speech to the American Chamber of Commerce, Eng.Tarek El-Molla, Minister of Petroleum and Mineral Resources pointed out that the government is boosting the Egyptian economy, taking positive steps towards that goal.

The Minister stressed that Egypt owns all the potentials to achieve its ambitions for improving the standard of living and public services, as well as increasing job opportunities and restoring its leading role on the Regional and International levels.

During the meeting, the Minister reviewed the strategy of oil and gas sector and the main pillars; which are securing energy supply to the domestic market with reasonable prices in order to increase sustainable economic development rates, diversifying energy sources, effective management of energy demand, financial sustainability to improve sector governance, besides attracting investments. He also stressed encouraging oil and gas exploration and research activities and increasing investments By offering new International bid rounds to attract investments, modification of gas pricing items in the agreements and arrears reduction of foreign companies operating in Egypt to less than half, where currently stands at about $ 3 billion. He pointed out that the Petroleum Sector is going on in its efforts to secure imports of petroleum products and LPG to meet the needs of the electricity, in addition to industry sectors, along with improving, developing and raising efficiency of infrastructure.

The Minister added that the Ministry of Petroleum is underway to intensify its efforts, in cooperation with foreign partners to accelerate projects development and natural gas production from deep water discovered fields in the Mediterranean, which includes five new projects over the next five years, Zohr, North Alexandria, Atoll , Salamat and WDDM phase (9- b) with total investments up to about $ 35 billion, adding production estimated at 6 billion cubic feet per day gas contributing to offset mature fields declining production and increase Egypt’s gas production to bridge the gap between production and consumption . In addition, the development project of the Giant discovery (Zohr) , in the Mediterranean has started in cooperation with the Italian Company Eni, at the end of the past year.

Also, he mentioned that the Ministry adopts implementing several plans, reform measures in a period of 5-6 years in order to reform energy subsidy.

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