By John Ikani
Egypt aims to restore its oil and gas production to previous levels starting in 2025, with the help of international collaborators.
Prime Minister Mostafa Madbouly announced this at a press conference on Thursday.
Egypt had previously set its sights on becoming a major centre for liquefied natural gas in the region, following a series of significant discoveries, notably the massive Zohr offshore gas field, estimated to contain around 30 trillion cubic feet of gas.
However, these aspirations were hindered by a shortage of foreign currency, resulting in the accumulation of unpaid debts.
“There is a well-defined plan in place to restore oil and natural gas production with our foreign partners to prior levels and even surpass them in the future,” stated Madbouly.
The government had previously disclosed in March that it had initiated the process of settling the dues owed to international companies involved in petroleum projects within the country.
A payment plan addressing 20% of the outstanding arrears has been implemented, with the government assuring that the remaining balance will be cleared according to a predetermined schedule.
During the summer, Egypt had to resort to power cuts to maintain the stability of its electrical grid, stating the necessity to import approximately $1.18 billion worth of natural gas and mazut fuel oil to resolve the persistent electricity shortages.
It’s worth noting that the country relies heavily on natural gas for generating the majority of its electricity.
