Egyptian Cabinet Approves 12 E&P Bills

The Cabinet passed 12 exploration and production (E&P) bills related to the oil and gas sector.

These bills include eight projects for the Egyptian Natural Gas Holding Company (EGAS) in (Narges- North Al Dabaa – North Sidi Barani – North Al-Salloum- North Al-Amiriya – North of Ras Kanais – North Marina- North of Cleopatra) in the Mediterranean.

Additionally, Ganoub El Wadi Petroleum Holding Company (Ganope) has three projects in the blocks 1, 3, and 4 in the Red Sea. Another project is accounted for the Egyptian General Petroleum Corporation (EGPC) in East Abu Sennan in the Western Desert. The statement noted that these agreements will see the involvement of a number of American, British, French, Emirati, and Kuwaiti companies.

The Cabinet also approved the agreement between  Misr Petroleum and EgyptAir regarding the debt owed by EgyptAir to Misr Petroleum . On that note, 50% of the back interests from the monthly withdrawals will be forgiven as stipulated in the contract between Misr Petroleum and EgyptAir. Meanwhile, payment will be made in installments over eight years and EgyptAir will have a one-year period before it begins payment and settlement of the debt.

Petroleum Sector Surplus

The Deputy Minister of Finance for Financial Policies, Ahmed Kojak, said that petroleum sector achieved a surplus in the state’s public budget exceeding EGP 20 billion during the first nine months of the current fiscal year (FY) 2019/20, according to the General Trade Union for Petroleum Workers (GTUPW) website.

He added, during a video conference meeting with representatives of international oil companies (IOCs) that are operating in Egypt, that this is the first time to achieve such a surplus in several years. The meeting was organized by the American Chamber of Commerce and the US Agency for International Development (USAID).