Sherif Ismail, Minister of Petroleum and Mineral Resources, received a delegation from Star Oil & Gas Limited (SOG), the Chinese partners in the International Drilling Material Manufacturing Co. (IDM) in which the petroleum sector contributes 50%.
The Chinese investors presented a study for the establishment of a new factory for the production of partially complete steel pipes that will be funded in total by the Chinese government and banks, to the tune of about $250 million. This will be a new addition to the IDM complex that is working to provide these pipes to Egypt and Africa.
SOG representative Mohamed El Gohary explained that this is a heavy industry project, and that the factory will be the first plant of its kind in Africa and the second plant in the Middle East, to provide semi-finished steel pipes for Egypt’s future petroleum projects in drilling and exploration; as well as refineries and petrochemical projects, oil and gas transmission lines, and many other industrial projects. It was the Chinese investors’ confidence in the Egyptian petroleum sector and Egypt’s vision for its economic future that encouraged the Chinese government to prepare and present this study.
President of SOG Li Yang explained that their success in this joint venture with the petroleum sector through IDM over the past 5 years, with the returns to both the shareholders and the Egyptian economy, was what prompted this decision by the Chinese government to increase investment in Egypt. Egypt is seen now as the key to investment in Africa and the region. This project will be the third completing phase of IDM’s strategic plan.