Egypt concludes procedures for 3 oil agreements worth $9.2B
Ships cross the Suez canal - REUTERS

CAIRO: Egypt’s Ministry of Petroleum is preparing to sign final agreements for three major oil and gas exploration deals at a total cost of $9.2 billion, after concluding procedures, an informed source told Youm7 Saturday.

Egypt has witnessed the worst energy crisis over the past few years, with daily power outages which lasted for 12 hours in some areas nationwide last summer.

“Oil and gas sector is speeding up any steps that could secure energy supplies to avoid possible shortages in the summer, namely power cuts,” the sources added.

Since the 2013-end, Egypt has signed 53 new agreements with international companies to explore oil and gas with total investments of some $2.9 billion, the source said.

Egypt repaid $2.1 billion of the debt owed to oil and gas foreign partners in December, in a step aimed at boosting exploration and production to ease the energy shortage, and outstanding arrears slipped to $3.1 billion.

In July, President Abdel Fatah al-Sisi raised fuel prices and cut energy subsidies in the new budget by 10 percent, saving around 44 billion EGP. The budget amounted to 100.3 billion EGP, compared to 144 billion EGP in the previous year.

The government plans to remove energy subsidies completely within three to five years, Minister of Finance Hani Kadry announced earlier in July.

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