Egypt Expects New Oil Investments in Red Sea Region

Foreign firms are expected to operate in the Red Sea region this year as Egypt’s Ministry of Oil and Mineral Wealth plans to launch international tenders for oil and gas exploration, Minister Tariq al-Mulla announced Friday.

Mulla said in a press statement that seismic data collection and management was completed.

He explained that the maritime demarcation agreement with Saudi Arabia has opened new horizons for oil explorations in this pristine region, adding that international oil companies have shown strong investment interests amid potential discoveries.

The minister's remarks came as he chaired the General Assembly meeting of the Ganoub El-Wadi Petroleum Holding to approve its draft budget for the fiscal year 2019/2020.

Mulla indicated that the oil sector is currently working on an integrated plan for the development of the petrochemicals industry and creating an appropriate atmosphere for attracting more investments.

As part of the framework of the comprehensive vision to develop Upper Egypt and the services for residents, the sector had developed the energy power plant in Asyut, storage units, delivery of gas to homes and the establishment of new supply stations.

The Minister stressed the importance of applying environmental conservation standards as an element of attracting investments.

President of Ganoub El-Wadi Petroleum Holding Mohamed Abdul Azim said there are plans to drill nine new wells in the second half of the current financial and fiscal year 2019-2020, in the company's various areas of operations and joint ventures.

He indicated that the plan involves producing up to 25,000 barrels of crude oil per day.

He pointed out that a number of projects, including the collection of geophysical data in the Red Sea in cooperation with “WesternGeco, Schlumberger”, with $715 million worth of investments, are in the implementation phase.

Abdul Azim added that the target is to refine about 4 million tons of crude at Asyut refinery, and establish 11 new supply and service stations, as part of the projects of Nile Company, a Ministry-affiliated firm, aiming to reach 77 stations by the end of the fiscal year 2019-2020.

He concluded by announcing that one of the company’s targets is to deliver gas to about 100,000 housing units in Upper Egypt.