$ 2.8 billion in oil sector's foreign investments under 2003-2004
Egypt's Minister of Petroleum Sameh Fahmy said that the oil sector has succeeded in luring foreign investments to the tune of $ 2.8 billion in the fields of exploration activities and natural gas exports under the FY 2003-2004.
Fahmy noted that the sector's investments have surged up to $ 9 billion in the last five years including $ 2.3 billion in foreign investments in the non-oil projects besides a sum of $ 7 billion in oil exploration and development activities.
He added that the oil sector's main aim is to attract foreign investments to reach $ 3 billion annually to alleviate burdens on the state budget, noting that the Ministry has succeeded in luring foreign investments in liquefied natural gas exports despite the fierce competition among the other Middle East countries and the difficult economic situation worldwide.
Fahmy indicated that the value of Egypt's oil exports hit $ 4.3 billion in the FY 2003-2004 due to a bounce in highly reputed oil by products and petrochemicals as well as natural gas exports.
The Minister announced that the Egyptian General Petroleum Company (EGPC) has discovered a field in the Gulf of Suez in north west of Amer area whose proven reserves reached 100 million barrels while the London-based Soco International Company has unveiled another field in Ras Fanar in Al-Zeit Gulf whose production is estimated to reach 3000 barrels per day.
Meanwhile, Fahmy said that modifying the natural gas pricing has resulted in saving about $ 1.3 billion till the end of June 2004, pointing to the importance of the modification of natural gas pricing in light of the continuation of oil prices surge in world markets.
He said that the oil sector has added about 6.7 trillion cubic feet, a matter which led to an increase in the natural gas reserves to 66 trillion cubic feet at the beginning of July 2004.
He pointed to an increase in the national network gas to 135 million cubic meters whereas the natural gas production has increased to 32 billion cubic meters in the FY 2003-2004,1.1 million tons of butane gas and 33.5 million tons of condensates.
Furthermore, British Petroleum has recently signed two agreements with Egypt including one in the Gulf of Suez over an area of 1174 sq. kilometers and minimum commitments worth $ 20 million to drill 4 wells in nine years.
The second agreement is designed to modify the natural gas pricing to explore oil in the Gulf of Suez.