Oil sector, restructuring not privatization

On the 27th anniversary of the regaining of the Sinai oil fields in November 17, 1975, Minister of Petroleum Eng. Sameh Fahmi held an open meeting with journalists where explained his ministry's policies and strategies as well as its standing related huge changes and challenges.

Fahmi said that oil sector will be restructured to include four main entities: Egyptian General Authority for Petroleum, the Egyptian Holding Company for Natural Gases, the Egyptian Holding Company for Petrochemicals and South Valley Holding Petroleum Company. This division does not mean privatization. Rather, it aims at coping up with successive changes and development and progress in petroleum activities, he added.

The minister explained that restructuring petroleum sector aims also at facilitating procedures before foreign investors, attracting Arab and foreign investments and participating in their capitals. In this context, Emirates-Egypt Oil Company has been established with joint investments amounting to L.E. 100 million. The company would build 70 oil stations for car service and promotion of petro-products, he noted.

The establishment of the South Valley Holding Company came in response to President Mubarak's directives of developing the South Valley in all fields of oil industry, Fahmi remarked. This company would contribute greatly to putting south Valley areas on the development map as well as creating job opportunities and improving infrastructure, he said.

As for petrochemicals industry, the minister said that a national plan was drawn for upgrading this industry, comprising building 14 complexes for meeting the increasing needs for petrochemicals and maximizing the value added of Egypt's gases reserves that doubled recently.