RESEARCH & ANALYSIS
OVERVIEW OF PETROLEUM SECTOR'S INVESTMENTS OVER FYS (2016/17-2020/21) BY JOLLY MONSEF, MARIAM AHMED & YOUSTINA MOUNIR
Over the past five fiscal years (FYs), the petroleum sector has witnessed many developments and an increase in the volume of investments , especially in the activities of both crude oil and natural gas extractions as well as oil refining. Achieving this growth in investments came in line with the intention to implement the modernization project which started in 2016, with its first pillar focusing on accelerating upstream investments. This is in addition to the bid rounds launched to encourage more companies to pump more investments in the sector.
Petroleum Sector's Investments Over the five FYs (2016/17-2020/21), the total Investments in the petroleum sector reached EGP 556.2 billion. It is worth noting that starting from FY 2016/17, the investments witnessed an increasing trend until FY 2018/19. In FY 2018/19, the investments jumped by 142% year-on-year (YoY) to reach its peak. This growth is accelerated by crude oil discoveries that increased by 18% YoY, in addition to the largest gas discovery in the Mediterranean to date, Zohr gas field, which started production in December 2017. Yet, in FY 2019/20, investments saw a decline caused by the surge of global COVID-19 pandemic.
TOTAL PETROLEUM SECTOR'S INVESTMENTS (EGP billion)
Average Share of Petroleum Sector's Investments in Total Investments over FYs (2016/17-2020/21)
197.5
76.0
7.3
104.9
96.3
81.5
14.5% 8.9
51.2
142.4
FY 2016/17
2017/18
2018/19
10 | EGYPT OIL & GAS NEWSPAPER
2019/20
2020/21