Egypt Finalizes 12 Oil, Gas Exploration Agreements

Egyptian Minister of Petroleum Tarek al-Mulla (file photo: Reuters)
Egyptian Minister of Petroleum Tarek al-Mulla (file photo: Reuters)
TT
20

Egypt Finalizes 12 Oil, Gas Exploration Agreements

Egyptian Minister of Petroleum Tarek al-Mulla (file photo: Reuters)
Egyptian Minister of Petroleum Tarek al-Mulla (file photo: Reuters)

Egyptian Minister of Petroleum Tarek al-Mulla announced that research and exploration in the energy sector are ongoing in the country, despite the repercussions and challenges of the coronavirus pandemic.

Mulla said that the economic and financial reforms that have been implemented during the past five years helped mitigate the effects of the crisis.

Speaking during a videoconference on the “Future of Energy in Egypt,” the minister pointed out that the petroleum industry succeeded in completing 12 agreements of oil and gas research and exploration in the Western Desert, eastern and western Mediterranean and the Red Sea.

The parliament recently approved the agreements, and preparations are underway for the final signature with the foreign companies.

The meeting was held with the participation of the members of the Egyptian-US Business Council and the US Chamber of Commerce in Washington, Huston and Cairo.

Economic and trade relations between Egypt and the US are very strong and distinguished, he said, adding that the two countries have launched the first strategic dialogue in the energy field last year.

Mulla said that Egypt’s arrears to foreign oil companies stood at $850 million at the end of June, done from $900 million a year earlier.

“The balance of foreign partners’ dues decreased by the end of June to $850 million from $900 million a year ago, despite the impact of the coronavirus crisis,” he told Reuters.

The minister announced that the domestic consumption rates of petroleum products and natural gas have witnessed a noticeable decline during the past five months, indicating that the sector has achieved about 27 percent of Egypt's gross domestic product, according to the latest announced economic indicators.

Arrears to foreign oil companies accumulated after the 2011 uprising and reached $6.3 billion in the 2011/2012 fiscal year. However, they have declined steadily since the 2014/2015 fiscal year as Egypt sought to become a regional energy hub.



UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
TT
20

UN Forecasts Slower Global Economic Growth Following Trump’s Tariffs and Trade Tensions 

An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, US, May 13, 2025. (Reuters)

The United Nations on Thursday forecast slower global economic growth this year and next, pointing to the impact of the surge in US tariffs and increasing trade tensions.

UN economists also cited the volatile geopolitical landscape and threats of rising production costs, supply chain disruptions and financial turbulence.

“These days, there’s so much uncertainty in the air,” said Shantanu Mukherjee, director of the Economic Analysis and Policy Division at the UN Department of Economic and Social Affairs.

“It’s been a nervous time for the global economy,” he told reporters while launching the midyear forecast. “In January this year, we were expecting two years of stable — if subpar — growth, and since then, prospects have diminished, accompanied by significant volatility across various dimensions.”

The UN is now forecasting global economic growth of 2.4% this year and 2.5% next year — a drop of 0.4 percentage point each year from its projections in January. Last year, the global economy grew 2.9%.

Mukherjee said the slowing is affecting most countries and regions, but among the most severely hit are the poorest and least developed countries, whose growth prospects have fallen from 4.6% to 4.1% just since January.

“That translates into a loss of billions in economic output for the most disadvantaged of countries,” which are home to over half the global population living in extreme poverty, he said.

The world’s developed and developing countries also are projected to suffer, according to the UN report.

Economic growth in the United States is now projected to drop significantly, from 2.8% last year to 1.6% this year, it said, noting that higher tariffs and policy uncertainty are expected to weigh on private investment and consumption.

China’s growth is expected to slow to 4.6% this year from 5% in 2024 as a result of subdued consumer sentiment, disruptions in its export-oriented manufacturing companies, and continuing challenges in its property sector, the report said.

The European Union’s growth is forecast to remain the same this year as it was last year — just 1%, the report said, citing weaker net exports and higher trade barriers. The United Kingdom’s economic growth of 1.1% last year is projected to fall to 0.9%.

Weakening trade, slowing investments and falling commodity prices are also forecast to erode growth in other major developing economies, including Brazil, Mexico and South Africa.

India will remain one of the world’s fastest-growing large economies, but the UN forecast said its growth is expected to drop from 7.1% in 2024 to 6.3% this year.

The UN’s global economic growth forecast is lower than the International Monetary Fund’s.

On a more positive note, Mukherjee said the UN is expecting that bilateral negotiations will lead to lower tariffs, although he said they won’t return to the levels before US President Donald Trump’s February announcement.

Nonetheless, Mukherjee said, resolving uncertainties would help individuals and businesses move forward with economic decisions and that would have a positive impact on the global economy.