Egypt has been very successful in attracting foreign investment and
arranging fruitful partnerships with major international oil and gas
companies. The success of these partnerships has been due to the
continuous support of the Egyptian Government and has been enhanced by
many reasons that make Egyptâ€™s energy industry a desirable location for
investment. These reasons include:
The adoption of state-of-the-art technologies encouraged Egypt to
explore all possible chances to sustain its credibility within all
sectors of the hydrocarbon industry. Egyptian oil and gas experts
enhanced the exploration of new deep water exploration and development
adding up new reserves to the Egyptian oil and gas reserve, and
resulting in a unique hydrocarbon reserves. In the western
desert, new techniques and geological concepts have been introduced in
the field giving rise to new opportunities for oil and gas reserves in
Egypt. There has been an effective introduction of new technologies and
theories in the natural gas sector and in addition to the presence of
exploration acreage, instead of having one bid a year, the 3
organizations responsible for the oil and gas exploration (EGPC,EGASand GANOPE) have 2-3 bid rounds every year, increasing the investment opportunities.
Due to Egyptâ€™s geographical location, Egypt is located at cross roads
with three continents (Africa, Asia and Europe) and thus transportation
is facilitated between these continents. With proximity to important
markets and having close ties with Europe, Egypt is a gateway of all
East-West trade, making it a place for investment in both the upstream
and downstream sectors. In addition to being on one of the vital marine
traffic routes, Egypt controls the Sinai Peninsula, which is an area of
great hope with regard to the petroleum industry.
Expertise of the state energy company, EGPC
Formed in 1962, the Egyptian General Petroleum Corporation (EGPC)
became the major operator in the form of joint ventures with foreign
companies. As the first economic corporation established in the
petroleum industry in Egypt, EGPC has expertise with all sectors of the
industry as it is active in the upstream, downstream and petrochemical
sectors. It has full responsibility for all sectors of the Egyptian
petroleum industry and holds the sole right to import and export crude
oil and other petroleum products. As a controller of the industry, any
foreign investments in Egypt are maintained through a joint venture
with the EGPC and are supervised by the government.
There have been new petroleum-related legislation introduced which
makes Egypt an attractive investment destination. Since the 1990s, the
Egyptian government started passing new laws with the aim of attracting
local, regional and multi-national investments through reducing &
simplifying the procedures & regulations that hinder investment.
For more information on the Egyptian legal framework created by the
government that facilitates and ensures for the investor the
sustainability of their installations, visit our regulations section.
With the installation of the 2004 Egyptian parliament, the Government
of Egypt began a new reform movement, following a stalled economic
reform program begun in 1991, but moribund since the mid-1990s. In the
past year, the cabinet economic team has simplified and reduced tariffs
and taxes, improved the transparency of the national budget, revived
stalled privatizations of public enterprises and implemented economic
legislation designed to foster private sector-driven economic growth
and improve Egypt's competitiveness.
Today, Egypt lives a new phase of political and democratic development
aiming at more deepening of democratic practice, enhancing freedoms and
laying down the state of law, institutions and respect of human rights.
To bolster stability and moderation in the region, Egypt has provided
military assistance and training to a number of African and Arab
states. Egypt remains a strong military and strategic partner of the
United States. Egypt is enjoying political stability amidst a
high tensioned region.
For more information on why Egypt is a desirable location with regard to the energy industry, contact us to order the Petroleum in Egypt: Investorâ€™s Handbook.