Egypt expects $755 million oil surplus in 2000/2001
Egypt, Economics, 7/11/2000

Egypt expects an oil surplus of $ 755 million for the fiscal year 2000/2001 (July-June) after earlier budget projections of a $ 450 million deficit.

The government had revised its forecasts of policies aimed at boosting oil exports and finding substitutes for oil imports.

The total increase in the petroleum sector balance of payment reached $ 1.2 billion.

The government intends to double the petroleum production to reach two million tons annually.

Natural gas revenue projections had also been revised, with the government expecting a surplus of $ 1,565 billion instead of a deficit of $ 744 million.

Egypt's crude oil output was running at 724,516 barrels per day in May. Natural gas sales stood at 1.86 billion cubic feet per day out of a total production of 2,323 billion cubic feet, with the balance used by producing firms to operate their facilities.

"Egypt is qualified to export natural gas as it enjoys huge gas reserves at high competitive prices" said Sameh Fahmy.

In a recent meeting with members of the American Chamber of Commerce in Cairo, Fahmy pointed out that several draft agreements were signed for export of gas to Europe which is the main target market.

Sameh Fahmy has set a plan for promoting petrochemical industries including the utilization of high technologies and reduction of costs to maintain competitive advantages.

Fahmy pointed out that Egypt is aware of the fierce competition in the oil market but, he stressed, the country enjoys great potentials for oil and gas investments.

"More than 80 per cent of the oil sector has been privatized," said Sameh Fahamy.

He expected that more world companies would operate in Egypt and that the existing ones would boost their investments.

Meanwhile, Fahmy said that steps are being taken to open new markets for the Egyptian oil companies working in the maintenance and repairing of oil equipment and pumps.

The Egyptian side will repair and modernize a crude oil pipeline that will carry the oil from Tanzania to Zambia and upgrade an oil refinery in Zambia upon a request by its ministry of energy and water resources.

On the other hand, Sameh Fahamy expressed readiness to contribute in repairing the Kuwaiti Al-Ahmady refinery which was heavily damaged by a fire recently.

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