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Egypt Seeks to Improve Oil Sector amid New Discovery

President Sisi during his meeting with cabinet members in Cairo on Monday. Egyptian Presidency
President Sisi during his meeting with cabinet members in Cairo on Monday. Egyptian Presidency
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Egypt Seeks to Improve Oil Sector amid New Discovery

President Sisi during his meeting with cabinet members in Cairo on Monday. Egyptian Presidency
President Sisi during his meeting with cabinet members in Cairo on Monday. Egyptian Presidency

Egypt’s President, Abdel Fattah al-Sisi, has called for the improvement of the country’s petroleum sector as Italian company Eni announced a new light oil discovery in the Egyptian Western Desert.

Sisi met on Monday with Prime Minister Moustafa Madbouly and several cabinet ministers, urging them to adopt a plan on the improvement of the petroleum sector.

He stressed the importance of improving the skills of workers in the field and providing them with an environment that encourages innovation.

He also said that specialized companies abroad should help train workers in the field in hopes of turning Egypt into a regional trade center for oil and gas.

His instructions included creating the necessary environment to attract investments in exploration.

The presidential spokesman, Ambassador Bassam Rady, said that improving the oil sector contributrs to the government's comprehensive development plan.

Eni said Monday that the discovered well is located in the South West Meleiha license, 130 km away from the Suwa oasis. This is the second well drilled by Eni.

However, the company did not specify the reserves in the new well, which lies seven kilometers away from the first discovery.

The statement also revealed that Eni has entered the production phase, with 5,130 barrels of oil per day.

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Saudi Arabia Begins Marketing International Bonds Following 2025 Borrowing Plan Announcement

Riyadh (Reuters)
Riyadh (Reuters)
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Saudi Arabia Begins Marketing International Bonds Following 2025 Borrowing Plan Announcement

Riyadh (Reuters)
Riyadh (Reuters)

Saudi Arabia has entered global debt markets with a planned sale of bonds in three tranches, aiming to use the proceeds to cover budget deficits and repay outstanding debt, according to IFR (International Financing Review).

The indicative pricing for the three-year bonds is set at 120 basis points above US Treasury bonds, while the six- and ten-year bonds are priced at 130 and 140 basis points above US Treasuries, respectively, as reported by Reuters.

The bonds, expected to be of benchmark size (typically at least $500 million), come a day after Saudi Arabia unveiled its 2025 borrowing plan. The Kingdom’s financing needs for the year are estimated at SAR 139 billion ($37 billion), with SAR 101 billion ($26.8 billion) allocated to cover the budget deficit and the remainder to service existing debt.

The National Debt Management Center (NDMC) announced that Finance Minister Mohammed Al-Jadaan had approved the 2025 borrowing plan following its endorsement by the NDMC Board. The plan highlights public debt developments for 2024, domestic debt market initiatives, and the 2025 financing roadmap, including the Kingdom’s issuance calendar for local sukuk denominated in Saudi Riyals.

The NDMC emphasized that Saudi Arabia aims to enhance sustainable access to debt markets and broaden its investor base. For 2025, the Kingdom will continue diversifying its domestic and international financing channels to meet funding needs efficiently. Plans include issuing sovereign debt instruments at fair prices under risk management frameworks and pursuing specialized financing opportunities to support economic growth, such as export credit agency-backed funding, infrastructure development financing, and exploring new markets and currencies.

Recently, Saudi Arabia secured a $2.5 billion Sharia-compliant revolving credit facility for three years from three regional and international financial institutions to address budgetary needs.

In 2024, Saudi Arabia issued $17 billion in dollar-denominated bonds, including $12 billion in January and $5 billion in sukuk in May. Rating agencies have recognized the Kingdom’s financial stability. In November, Moody’s upgraded Saudi Arabia’s rating to “AA3,” while Fitch assigned an “A+” rating, both with stable outlooks. S&P Global rated the Kingdom at “A/A-1” with a positive outlook, reflecting its low credit risk and strong capacity to meet financial obligations.

The International Monetary Fund (IMF) estimated Saudi Arabia’s public debt-to-GDP ratio at 26.2% for 2024, describing it as low and sustainable. The IMF projects this ratio to reach 35% by 2029, with foreign borrowing playing a significant role in financing fiscal deficits.