INTERVIEW SAMEH FAHMY, MINISTER OF PETROLEUM

SAMEH FAHMY SAMEH FAHMY Minister of Petroleum

Why should international energy firms invest in Egypt’s energy sector?
Egypt is an attractive place for oil and gas exploration and production, and we have been very successful at attracting foreign direct investment. International companies operating in Egypt, such as Apache, BP, BG, Shell, the IEOC, and others, have all made discoveries in their concessions.

What is being done to attract foreign investors?
Egypt enjoys the political and economic stability that all investors look for. Our strategy includes issuing several bid rounds per year and speedy evaluation and awarding procedures. We are very transparent with our partners and always seek a balanced, win-win agreement. We provide all possible assistance to foreign direct investors to ensure the timely execution of projects. We have established several entities to promote oil and gas activities and we have a clear vision for the future, which we have converted into business plans. Future projects are clearly defined and we know what we want.

In terms of concessions, how much is on offer to foreign investors? Can you identify some of the key activities open to investment by U.S. firms?
More than 60% of Egypt is still open for exploration. Activities that have the potential to attract investors include exploration and production, gas export projects, petrochemical projects, pump manufacturing, maintenance and repair of compressors and turbines, safety gears and equipment, drilling services, and the manufacture of valves and piping.

How do you see development of the petrochemical industry?
The petrochemical industry is at the top of our agenda. Our current production of petrochemicals includes PVC, ethylene, polyethylene, and linear alkyl benzene. A business development strategy has been developed with an incentive package in order to attract FDI.
Our current consumption exceeds our production in products such as PVC and linear alkyl benzene; the local market is growing very fast. Our estimate of Egypt’s future consumption is 7-8 million tons per year by 2020, representing almost 50% of the total petrochemical production.
Our production will grow steadily. Our plan is to build three mega olefin complexes every 6-7 years. As for fertilizers, we are already gaining a competitive edge and 4-6 plants are likely to be established in the next few years.
Egypt is advantageously placed for exporting petrochemical products due to its proximity to international markets to the east and the west.