Written by: Fatima Younes
President Abdel Fattah El-Sisi revealed a plan to provide about $7 billion over two years, earmarked for paying the dues of foreign partners working in the oil and gas sector. This step comes at a time when the state is facing financial challenges to secure energy supplies and meet local fuel needs.
Challenges of Providing Foreign Currency to Secure Energy
President El-Sisi explained that the state needs to secure about $3 billion monthly to provide the petroleum products necessary to meet the needs of the local market. He indicated that the Central Bank will be responsible for providing the required foreign currency for this purpose, emphasizing the need for citizens to realize the magnitude of the financial burdens associated with securing energy resources to ensure the stability of supplies.
Responsibility for Fulfilling Obligations to Foreign Partners
The President stressed that the Minister of Finance bears the responsibility for arranging the dues of foreign partners, in order to ensure the fulfillment of the state's obligations and maintain its credibility before international companies working in the energy sector. This measure aims to stabilize the investment environment in the sector and ensure the continuity of operational activities for foreign companies.
Reviewing Petroleum Production and Local Needs
The President addressed the developments in petroleum production over the past years, pointing out that production reached 33 million barrels of oil. He explained that this quantity was sufficient to cover needs for a period ranging from 6 to 8 months, but it was not enough to achieve sustainable self-sufficiency. These clarifications come in light of discussing debts and financial entanglements between the entities concerned with providing fuel and generating electricity, and their impact on the state's needs for hard currency.
