Some 50 international companies invest in oil, natural gas in Egypt

Egypt's Minister of Petroleum Sameh Fahmi said stability in the production of crude oil was realized for the first time this year after it witnessed a continuous plunge since 1994, adding that the daily production is now reaching 625,000 barrels, sometimes rising to 742,000 to provide local consumption and channel part for export.

In statements Thursday after receiving a report by the Egyptian General Petroleum Corporation (EGPC) on the plans to maintain the productivity of land and offshore fields and use of modern technology, Fahmi set Egypt's crude oil reserve at 3.500 billion barrels, adding this reserve is dynamic and permanently changing thanks to the new finds.

He said 50 international companies in the prospecting field are now working on Egyptian soil, territorial waters and exclusive economic zones with annual investments of up to $ 2 billion.

The success realized during the fiscal year 2002/2003 resulted in 27 new finds, catapulting Egypt to the first rank among Arab countries in oil finds, said Fahmi, noting the country's consumption of oil products hit 22 million tons during the first half of this year, representing some 92 percent of the nation's needs.

He said subsidy for oil products will hit L.E. 20 billion this year and the prices are not going to soar.

Next year will see an immense exploratory activity in light of the agreements to be signed with world companies as an invitation was extended for four international tenders during FY 2002/2003 for the first time in Egypt, said Fahmi.

The minister referred in this respect to the Cabinet's approval in a recent meeting over 19 new agreements.