Talks by the Egyptian Natural Gas Holding Company (EGAS) with Toyota Corp on launching a drilling joint-venture for deep-waters operations have reached a very advanced stage
A senior official at EGAS said both companies were running final negotiations on the ownership structure of the new venture, which would mark the first initiative by Toyota Corp in the Egyptian energy industry.
Natural gas industry is one of the most dynamic and flourishing industries and is earning more recognition in shaping an optimistic future outlook locally and globally.
The official added that the Minister of Petroleum Eng. Sameh Fahmy reached a semi-final agreement with top executives at Toyota on the new venture during his visit to Japan in last February.
Fahmy said during this visit that a joint venture would be set up with PetroMaterials Corporation.
“The new drilling operation comes as part of the oil and gas exploration efforts in Egypt with scores of international energy companies showing greater interest in the Egyptian market,” clarified the official.
In view of natural gas industry vital role to the country’s economy and according to the vision of the Ministry of Petroleum, it was decided to establish EGAS as an entity focusing on the natural gas chain of activities.
The state-owned EGAS has drawn up a 20-year gas development plan which requires investment in excess of $1.2 billion a year over the first five years. At the core of the plan is developing Egypt’s gas exporting potentials
Many companies have explored the offshore area successfully and gas production has been achieved from deep waters, adding to a growth in output from areas nearer to the coast. British Gas (BG), BP, Shell and ENI are classified as the main operators.
EGAS was established in August 2001, adopting an effective action plan to organize and diligently handle the activities of the natural gas resources of Egypt and adding value to the Egyptian economy.
By Ashraf said