Egypt signs US$12 billion energy deal

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BP, a British oil company, has announced finalizing a US$ 12billion energy deal with Egyptian government to develop 5 trillion cubic feet of gas resources and 55 million barrels of condensates in the west Nile Delta.

Production is expected to begin in 2017 and reach up to 1.2 billion cubic feet a day, which will comprise 25 percent of the country’s current production.

The investment deal was put to pen at an international investment conference in Sharma El-Sheikh resort, and it will help the country tackle its worst energy crisis in years. It will cover exploration and resource appraisal at the West Nile Delta, and operations in East Nile Delta and Gulf of Suez, and will help reduce the energy deficit that has currently made Egypt – once an energy exporter- an energy importer.

The country is also facing persistent blackouts and has, however, announced that it would seek 20% of power from renewable energy by 2020 to help end crisis. The country last week signed an agreement for a 5GW utility solar power plant. Phase one of the project would start off late this year.

The energy deal comes slightly ahead of a major economic conference which focuses at increasing foreign investments in the country whose economy is still wobbling flowing series of protests in the region in 2011 which over turned the ruling of Mubarak.

Egypt’s Investment minister Ashraf Salman added that Egypt’s administration was hoping to attract US$ 35 billion in 50 projects at the upcoming conference.

“At the moment the country has already attracted US$1.3 billion in foreign investment in the fast quarter of the fiscal year, and US$8 billion come the end of the fiscal year in June.” He added.