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EGP 65.3bn investment allocated for petroleum sector in FY 2021/22: El-Said - Daily News Egypt

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EGP 65.3bn investment allocated for petroleum sector in FY 2021/22: El-Said

Ministry of Planning reviews main objectives of Egypt’s oil sector in FY 2021/22 plan


Minister of Planning and Economic Development, Hala El-Said, indicated that the total investments allocated for the petroleum sector in fiscal year (FY) 2021/22 amounted to EGP 65.3bn, of which EGP 48.7bn went to extraction activities, and about EGP 16.6bn for refining activities.

The Ministry reviewed the objectives of the petroleum and mineral resources sector in FY 2021/22, which is the fourth and final year of the medium-term plan for sustainable development (2018/19 – 2021/22).

El-Said stressed 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.

The sector plays a great role in strengthening the country’s trade balance by developing its exports to foreign markets and rationalizing imports in a sustainable manner consistent with the consumption needs of the growing population and the requirements of the country’s ambitious development plans.

The Planning Ministry’s report addressed the petroleum sector’s strategic objectives of securing the local market’s needs of petroleum, petrochemicals, and mineral products in line with the targeted economic growth rates, through the expansion of research and exploration activities. 

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 2021/22, the report indicated an increase in production in the extractive sector (crude oil, gas, and other extractions) and the petroleum refining industry by 10% at current prices to about EGP 1.31trn in 2021/22.

It is estimated that the output of Extractive activities and oil refining amounted to about EGP 710bn at current prices in the year of the plan, compared to EGP 642.5bn expected in 2020/21, achieving a growth rate of 10.5%.

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 tonnes of petrochemical products, and 13 million tonnes of mineral ores.

Topics: Investment

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https://dailyfeed.dailynewsegypt.com/2021/08/24/egp-65-3bn-investment-allocated-for-petroleum-sector-in-fy-2021-22-el-said/
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