Minister of Petroleum and Mineral Resources Karim Badawi announced a series of new incentives to increase oil and gas production during an extensive meeting with key partners in the industry.
These incentives include new mechanisms linked to increasing production beyond current levels, as well as increasing exploration and development drilling activities and production workflows.
This will result in the revenues from increased production being used to pay off part of the debt to oil sector partners and provide additional oil to bridge the gap between local production and consumption.
In addition, it will help reduce monthly import costs, thus providing more financial resources to both parties. This reflects the commitment of the petroleum sector to improve the investment climate and encourage partners to make more investments, which will ultimately lead to increased production of gas and crude oil.
Badawi noted that the incentives reflect the oil sector’s commitment to improving the investment climate and encouraging partners to make more investments, which will ultimately lead to increased gas and crude oil production.
The partners praised the initiative as a further step towards intensifying their activities and thus increasing production.
Sameh Sabry, Wintershall Dea’s Senior Vice President and Managing Director for the Middle East and North Africa, said the initiative was good and showed how investment decisions should be made. He stressed the importance of understanding the challenges facing the oil industry, in particular the creation of new reserves and new production capacity, maintaining production levels and combating the depletion of natural sources.
Meanwhile, Iman Hill, Country Manager of VAALCO Energy in Egypt, said that the initiative is great and is presented transparently as a step towards addressing the challenges we all face, adding that implementation is the challenge we need to overcome.
Furthermore, Dalia El Gabry, Vice President and Country President of Shell Egypt, clarified that the initiative is bold but requires diligence and persistence. She pointed out that fruitful cooperation is the basis for achieving win-win benefits and that patience and commitment are required in its implementation, especially given the trust-building that the initiative offers.
In addition, Nicolas Katcharov, CEO of Energean and Country Manager for Egypt, emphasized the importance of consistent implementation as the initiative is very positive.
