The expansion of Total Energies’ investments in the Egyptian oil sector (in research, exploration and production of natural gas) was one of the highlights of the meeting between the Egyptian Minister in charge of oil and the French company, during the last Francophonie summit. This is what emerges from the release signed by the Minister of Petroleum. The two parties discussed ways of improving and increasing gas production rates in the Bashrush development zone in the Mediterranean, where Total Energies is present. “Egypt is creating a suitable environment to attract more investment from international companies,” said Badawi, quoted in the Egypt Daily News.
The Oil Minister stressed that the oil sector is interested in deepening the partnership with international companies and stimulating the acceleration of the pace of investment injection.
Total Energies’ activities in the energy sector in Egypt are likely to be expanded due to the investment opportunities and exceptional infrastructure available,
Pouyanné hinted. The recently established partnership between Total Energies and ADNOC (Abu Dhabi National Oil Company) in Egypt aims to expand the production, distribution and export of lubricating oils and petroleum products in Egypt and Africa. Pouyanné also expressed the company’s interest in the Mediterranean region and in exploring new areas, as well as its interest in opportunities to support aircraft fuel marketing and supply activities. Total Energies is active in the Egyptian market through its oil production plant in Alexandria. The oil giant is also involved in the Edko natural gas liquefaction plant in Egypt.
This planned investment, the amount of which was not disclosed, could accelerate development work on the North El Hammad concession’s Bashrush field, with an estimated production capacity of 100 million cubic feet per day. In addition to its participation in the North El Hammad concession, the French company is also involved in Block 3, an exploration zone located off the Mediterranean coast, of which it is the operator. This is in addition to its interests in the Idku gas liquefaction plant and in downstream Egyptian oil.
The announcement of this potential future gas investment by Total Energies in Egypt comes at a time when, two years ago, the company sold 50% of its downstream oil interests in Egypt for $200 million to the Emirati oil company Adnoc. Faced with growing energy demand and declining natural gas production, Egypt is actively seeking to attract foreign investment to revitalize its energy sector.
In this context, Total Energies, with its development projects, can play a crucial role in this strategy. If they come to fruition, these investments have the potential to boost Egypt’s gas production, stimulating the country’s economic growth, forecast by the World Bank to be around 4.2% in 2024-2025.
