Egypt Gas Turns The Corner, But Can It Maintain Investment?

16 Feb 2018 Issue: 61 / 7 By: Peter Stevenson

Eni and BP have been the two drivers of Egypt’s gas renaissance over the last two years. Their two key mega-projects are costing $24bn. But Cairo will need a steady flow of such upstream investments if it is again to become a major gas exporter.

A veritable who’s who of energy ministers and IOC executives descended on Cairo this week to attend the 2nd annual Egypt Petroleum Show (EGYPS) as Egypt intensifies efforts to attract investment in its hydrocarbons industry. The country has been reeling since the 2011 Arab Spring revolutions which scared off investors. Petroleum Minister Tarek El Molla was keen to highlight the success of Italian firm Eni and the UK’s BP which have together brought on 2.5bn cfd of gas over the last 19 months, 45% of current 5.5bn cfd gas output.

“Between November 2013 and December 2017, the country signed 83 E&P agreements, with minimum investments of $15.5bn, which included massive discoveries that promoted a game change on the Egyptian oil and gas market,” the minister says. (CONTINUED - 2208 WORDS)