These Oil Majors Just Made Egypt Their Highest Priority

17 Feb 2017   Egypt

Since 2011, political instability and regional insecurity have plagued Egypt’s economy, and the energy sector has not been spared. Until recently a net gas exporter, Egypt turned into a net importer in 2014 after political turmoil plunged the country into continued energy shortages, with domestic demand outstripping supply. In addition, shattered investor confidence and several devaluations of the local currency deterred foreign companies from investing in Egypt. But Cairo’s fortunes may have turned in August 2015, when Italy’s oil and gas major Eni SpA discovered Zohr, the largest gas field in the Mediterranean ever to be discovered. Now Eni, as well as UK’s supermajor BP, are betting big on the Egyptian gas exploration and production, and will be making Egypt their top investment destination in the coming years, pouring billions of dollars in their projects there. Eni plans to invest US$10 billion in Egypt over the next five years, […]

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