Chinese delegation offers $250M investment in Egypt
A Chinese delegation from Star Oil & Gas (SOG) with Minister of Petroleum and Mineral Resources Sherif Ismail - Photo courtesy of Ministry of Petroleum
By

CAIRO:  A Chinese delegation from Star Oil & Gas (SOG) holdings along with partners from the International Drilling Material Manufacturing (IDM) company met Sunday with Minister of Petroleum and Mineral Resources Sherif Ismail, offering new projects of $250M to be completely funded by the Chinese government and Chinese banks.

A statement released from the ministry added that the delegation discussed a feasibility study of a new steel rolling factory to produce seamless pipes to supply the entire African market, that will be considered as a “development step” in the whole IDM system.

SOG’s representative in Egypt Mohamed Al-Gohary stated that this project is going to be “a first” in the Middle East on the field of drilling and oil exploration. He assured that the Chinese trust in Egypt’s economic vision, that was one of the main reasons that encouraged them to prepare the study and discuss it with the government.

Li Yang, SOG holdings head, said that the Chinese government considers Egypt as a “key investment country” in Africa.

In December 2014 President Abdel Fatah al-Sisi made his first presidential visit to China.

A presidential statement released during that visit stated it would “usher in a new phase of relations between the two countries, as China has expressed an interest in promoting their relationship to the level of ‘strategic partnership’—a level China maintains with only a limited number of countries globally.”

During the visit, President Sisi held talks and signed a number of cooperation agreements with his Chinese counterpart President Xi Jinping, on bilateral economic and technical cooperation.

In previous presidential statement, spokesperson Alaa Youssef, noted that China is Egypt’s second largest trading partner. The trade between Egypt and China amounted to $10.3 billion in 2013, of which $1.9 billion were Egyptian exports to China and $8.4 billion were imports from China, according to government figures.

The history of modern bilateral relations between the two countries dates back to 1956, when Egypt became the first Arab and African country to recognize the communist government of the People’s Republic of China.

Recommend to friends

Leave a comment