Egypt aims to increase oil production to 790 billion in new fiscal year 22/23

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Suez Petroleum Manufacturing Company – Photo courtesy of company website

CAIRO – July 30, 2022: In the new fiscal year 2022/2023, the government aims to increase the output of the petroleum and mineral resources sector at current prices from 671.5 billion pounds in the previous year to around 790.9 billion pounds, an increase of 17.8%, according to the economic and social development plan presented by the Minister of Planning, Dr. Hala Al-Saeed, and approved by the two chambers of Parliament (representatives, senators).

At constant prices, it should reach around 675.5 billion pounds over the same period, with a slight increase of 0.6%. The increase in crude oil and natural gas production at these high rates is due to rising international energy prices.

The government’s objective is to increase production from the extractive sector to reach 686.9 billion pounds at current prices, against 575.6 billion pounds the previous year, achieving a growth rate of more than 18.1% , at constant prices, to reach 581.2 billion pounds in the same period, with a slight increase of 1% due to the drop in production of extractive crude oil of 2.9%.

The economic and social development plan for the new fiscal year 22/23 guides investments for the development of the oil and mineral wealth sector to the tune of 49.5 billion pounds in the plan year, of which 17.6 billion pounds for the refining activity, and EGP 31.9 billion for the extraction activities, or 3.5% of the total investment.

The private sector is expected to acquire the largest share of the sector’s investments of around 70%, while the public sector owns the remaining 30%, which is divided between the investments of each of the economic bodies 7.2 billion pounds and companies public 7.8 billion.

The oil sector is one of the pillars of economic growth, since it is a main source for meeting the energy needs of the State, which contributes positively and directly to meeting the requirements of the sustainable and comprehensive economic development plans adopted by the Egyptian state. As well as strengthening the trade balance by developing its exports to foreign markets and rationalizing its imports from them, in a sustainable manner and consistent with the consumption needs of a growing population, and the requirements of development plans. ambitious of the country.

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