Minister of Petroleum and Mineral Resources Karim Badawi has announced a new set of incentives aimed at increasing oil and gas production during an extensive meeting with important partners in the sector.
These incentives include new mechanisms that are associated with achieving an increase in production beyond the current rates, as well as an increase in exploratory, developmental drilling activities and production operations.
This will result in allocating the revenue generated from the increased production to settle part of the dues owed to the petroleum sector’s partners and provide additional petroleum to narrow the gap between local production and consumption.
Moreover, it will contribute to reducing the monthly import bill, thereby providing more financial resources for both parties. This reflects the petroleum sector’s commitment to improve the investment climate and encouraging partners to direct more investments, ultimately leading to increased production of gas and crude oil.
Badawi commented that the incentives reflect the oil sector’s commitment to improving the investment climate and encouraging partners to direct more investments, which ultimately leads to increased gas and crude oil production.
The partners expressed their praise for the initiative as a step to enhance their efforts to intensify their activities, and thus increase production.
Wintershall Dea’s Senior Vice President and Managing Director for the Middle East and North Africa Sameh Sabry said that the initiative is good and reflects how investment decisions should be made. He emphasized the importance of understanding the challenges facing the petroleum industry, most notably adding new reserves and new production, maintaining production levels, and confronting the depletion of natural wells.
Meanwhile, VAALCO Energy’s Country Manager in Egypt Iman Hill stated that the initiative is wonderful and was presented transparently as a step to confront the challenges we all face, adding that executing it is the challenge we should conquer.
Additionally, Shell Egypt Vice President and Country Chair Dalia El Gabry clarified that the initiative is brave, but it requires application and consistency , mentioning that fruitful cooperation is the foundation for achieving win win benefits, especially that it needs patience and commitment in application in light of bolstering confidence as offered in the initiative.
Moreover, Energean CEO and Egypt Country Manager Nicolas Katcharov, emphasized the importance of consistency in implementation because the initiative is very positive.
