The Egyptian government has agreed to import petroleum products from major Russian oil companies, reported Russia Today.
State-owned energy company Rosneft will provide assistance, with repayment for services due after 90 days.
Rosneft, which produces 5.2m boe/d, has signed an agreement with the Egyptian Holding Company for Natural Gas—EGAS—to supply 3.5m tons of gas over the next two years as of the last quarter of 2015. Rosneft will be providing the supplies in an effort to alliviate the natural gas shortage in Egypt.
Egypt plans to eliminate the deficit of gas in its domestic market and to narrow the gap between current production and demand by starting more gas projects. The Egyptian authorities are planning to attract investments of $35b to implement 50 new projects in the fields of oil and gas production.
Egypt is experiencing the worst energy crisis in decades due to the continuing decline in gas production, even as consumption rises. The country is optimistic that new discoveries by oil giants BP and Eni will increase its production.