China Petroleum & Chemical Corporation (Sinopec) downplayed the concerns about risks of investing in Egypt. Sinopec replied to rumored concerns that the company has bought a 33% stake in Apache’s assets in Egypt for $3.1b in 2013, informed Sada El Balad News.
Meanwhile, the Head of the HSE Department in Apache, Zhang Hong, stated that the concerns are not realistic adding that “the Egyptian project is more of a long-term investment and four years is too short to draw a conclusion. The prices of oil and gas are fluctuating. Now that they have hit the bottom, we’re confident our investment will recover its cost within the expected 10 years.”
Earlier in May, CNBC reported that Sinopec reinvested about $1b in Egypt over the last three years with an eye to long-term growth, and was in discussions to invest billions to help develop a petrochemical refinery complex south of the Suez Canal.
Sinopec’s general manager in Egypt, Shao Jingyang, said “We see a bright future here,” adding, “we want to make full-spectrum cooperation with Egypt.”