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Egypt plans to restore oil, gas production by 2025 amid financial challenges
(MENAFN) On Thursday, Egyptian Prime Minister Mostafa Madbouly announced the country's ambitious plan to return its oil and gas production to normal levels by 2025 through collaboration with international partners. Egypt aims to solidify its position as a regional hub for liquefied natural gas, leveraging recent significant discoveries like the massive Zohr gas field, which is estimated to contain around 30 trillion cubic feet of gas. However, this vision has been hampered by a shortage of foreign currency, which has led to substantial arrears owed to international companies.
To address these financial issues, the government has started a plan to clear 20 percent of these arrears, with intentions to settle the remainder according to a specific schedule. This financial strain has also led Egypt to implement load shedding over the summer to manage power grid demands, as the country requires approximately USD1.18 billion worth of natural gas and diesel imports to end persistent power outages. Egypt predominantly generates its electricity from natural gas, and recent figures from the petroleum ministry show that gas production has reached 5.7 billion cubic feet per day. Additionally, in July, the ministry signed agreements with two international firms to invest USD340 million in enhancing oil and gas production in the Mediterranean and the Gulf of Suez.
To address these financial issues, the government has started a plan to clear 20 percent of these arrears, with intentions to settle the remainder according to a specific schedule. This financial strain has also led Egypt to implement load shedding over the summer to manage power grid demands, as the country requires approximately USD1.18 billion worth of natural gas and diesel imports to end persistent power outages. Egypt predominantly generates its electricity from natural gas, and recent figures from the petroleum ministry show that gas production has reached 5.7 billion cubic feet per day. Additionally, in July, the ministry signed agreements with two international firms to invest USD340 million in enhancing oil and gas production in the Mediterranean and the Gulf of Suez.
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