Total investments targeted for Egypt's petroleum sector in 21/2022 plan hit LE 65.3B

CAIRO – 23 August 2021: Total investments targeted for the petroleum sector in the 2021/2022 plan amount to LE 65.3 billion, of which LE 48.7 billion are for extraction activities, and about LE 16.6 billion are for petroleum refining activities, at a rate of about 75 percent and 25 percent, respectively, according to Minister of Planning and Economic Development Hala El-Said.

El-Said added that the petroleum sector is one of the mainstays of economic growth, as it is a major source of providing the state's energy needs, which contributes positively and directly to meeting the requirements of sustainable and comprehensive economic development plans adopted by the Egyptian state.

This came in the review of the Ministry of Planning and Economic Development to the objectives of the petroleum and mineral resources sector in the plan for the current fiscal year 21/2022, which is the fourth and final year of the medium-term plan for sustainable development (18/2019 - 21/2022).

She added that the importance of this sector is manifested in its bearing the responsibility of securing the needs of all economic sectors and final consumption markets, as well as strengthening the trade balance by developing its exports to foreign markets and rationalizing its imports from them, in a sustainable manner consistent with the consumption needs of the growing population and the requirements of the country’s ambitious development plans.

Concerning the development vision of the petroleum sector, the report of the Ministry of Planning and Economic Development clarified that it is to secure the country’s needs of petroleum materials to keep pace with the requirements of sustainable development, maximize the petroleum sector’s contribution to the national income, and transform Egypt into a strategic center for energy trading.

The report addressed the sector's strategic objectives of securing the local market's needs of petroleum products, petrochemicals, and mineral resources in line with the targeted economic growth rates, in addition to securing oil and natural gas supplies through the expansion of research and exploration activities and diversification of sources.

The report also dealt with the development of the petrochemical industries to raise production rates, increase value-added and improve production quality, in addition to accelerating rates of implementation of gas delivery projects to homes to maximize the benefit of all citizens and regions from natural gas supplies.

 This is in addition to transforming Egypt into a regional center for the trading and trading of gas and crude oil and rationalizing the uses of natural gas

The mechanisms for achieving these goals include reviewing the legislative and institutional frameworks governing investment in this important sector, restructuring the sector to improve performance levels, developing and modernizing the sector to keep pace with the times, reviewing and evaluating partnership contracts with foreign parties, and continuing to build highly qualified national human cadres.

Regarding the quantitative targets of the sector with the plan for the year 21/2022, the report indicated an increase in production in the extractive sector (crude oil, gas, and other extractions) and the petroleum refining industry by 10percent at current prices to about LE 1.31 trillion in the year 21/2022.

It is estimated that the output of Extractive activities and oil refining amounted to about LE 710 billion at current prices in the year of the plan, compared to LE 642.5 billion expected in 20/2021, achieving a growth rate of 10.5percent.

The report added that the plan for the year 21/2022 includes the production of about 3.44 million cubic feet of crude oil, condensate, and butane, about 2.6 trillion cubic feet of natural gas, 4.37 million tons of petrochemical products, and 13 million tons of mineral ores.