Egypt is moving ahead with ambitious programs to develop the country’s upstream sector by attracting international investments, even as production jumps from its landmark offshore gas field Zohr.
The ministry is looking at improving the investment environment in order to attract more international oil and gas companies to help produce more hydrocarbons, Tarek El Molla, Egypt’s Minister of Petroleum and Mineral Resources said at an event in Cairo ahead of the third edition of The Egypt Petroleum Show (EGYPS), which takes place from Feb. 11-13 in Egypt’s capital.
While its works to develop and modernise the petroleum sector, the ministry is also implementing a roadmap to develop and refine petroleum products locally. It aims to boost the downstream sector through creative ways of attracting investments from international companies, El Molla said.
Meanwhile, Egypt’s giant Zohr offshore gas field has raised output to 2.1 billion cubic feet per day (bcf/d) and partners in the project will invest $1.2 billion in fiscal year 2019/2020 to “intensify development activities in the Zohr area”, the petroleum ministry said, according to Reuters.
The largest gas field in the Mediterranean, Zohr was discovered in 2015 by Italy’s Eni and began output in late 2017. It contains an estimated 30 trillion cubic feet of gas.
Zohr development costs in fiscal year 2018/2019 (to end-June) are seen at $3.2 billion, the ministry said.
El Molla said the third edition of the show is a testament to the success in attracting international oil and gas companies, along with the support for the sector from Egypt’s President Abdel Fattah Al Sisi to develop and modernise the sector.
“Egypt’s government represented by the Ministry of Petroleum and Mineral Resources has played a vital role in promoting the energy sector through setting up strategic partnerships to benefit from its enormous resources potential, as it gears up to become the regional hub for energy,” said Christopher Hudson, president of dmg events, the organiser of EGYPS.
EGYPS is part of efforts being done to support Egypt as a regional destination for research and exploration investment in light of promising oil and gas prospects, the ministry said.
The conference sessions during EGYPS will discuss Egypt’s energy transformation roadmap, which prioritises the development of the country’s hydrocarbon resources.