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Egypt Reduces Jet Fuel Prices to Boost Aviation, Tourism Sectors

A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
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Egypt Reduces Jet Fuel Prices to Boost Aviation, Tourism Sectors

A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]

Egypt will reduce jet fuel prices by 15 cents per gallon from January 21 until the end of 2021 to support the tourism and aviation sectors amid challenges posed by COVID-19 pandemic.

The decision came during the fourth meeting between Minister of Petroleum and Mineral Resources Tarek El Molla, Minister of Tourism and Antiquities Khaled Al-Anani, and Minister of Civil Aviation Mohamed Manar to discuss ways to boost the affected sectors.

For his part, Anani hailed the initiative, saying it will boost tourism in Egypt by motivating international companies to increase their flights.

Also, Manar praised the petroleum sector’s effort and support in providing fuel to all Egypt’s airports.

In a related context, Egypt and the International Islamic Trade Finance Corporation (ITFC) signed a finance cooperation program for 2021, providing the country with integrated financing solutions worth $1.1 billion.

The funds come as part of the $3 billion agreement concluded between the Ministry of International Cooperation and the ITFC in 2018.

The signing ceremony was attended by Minister of Planning and Economic Development and Egypt’s Governor at the Islamic Development Bank Group Hala El-Said, Minister of Petroleum and Mineral Resources Tarek El Molla, Minister of Supply and Internal Trade Aly Meselhi, Minister of International Cooperation Rania Al-Mashat, and Minister of Trade and Industry Nevine Gamea.

The program was signed by ITFC CEO Hani Salem Sonbol, Executive Vice President of the Egyptian General Petroleum Corporation (EGPC) Ashraf Abdullah, and Vice-Chairperson of the General Authority for Supply Commodities (GASC) Ahmed Youssef.

According to Molla, the five agreements have a total value of $9.2 billion, including the fifth framework agreement signed at the end of January 2018 at a value of $3 billion. For the financing of basic commodities, 16 financing operations amounting to $2.225 billion were approved within the agreement’s framework.

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Iraq to Sign Deal with Halliburton to Develop Nahr Bin Omar Oilfield

Participants observe a presentation at Halliburton's booth at the World Petroleum Congress in Houston, Texas, US December 7, 2021. REUTERS/Liz Hampton/File Photo
Participants observe a presentation at Halliburton's booth at the World Petroleum Congress in Houston, Texas, US December 7, 2021. REUTERS/Liz Hampton/File Photo
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Iraq to Sign Deal with Halliburton to Develop Nahr Bin Omar Oilfield

Participants observe a presentation at Halliburton's booth at the World Petroleum Congress in Houston, Texas, US December 7, 2021. REUTERS/Liz Hampton/File Photo
Participants observe a presentation at Halliburton's booth at the World Petroleum Congress in Houston, Texas, US December 7, 2021. REUTERS/Liz Hampton/File Photo

Iraq and US oil services firm Halliburton are close to finalizing an agreement to develop the Nahr Bin Omar oilfield, the head of Iraq's Basra Oil Company (BOC) told Reuters on Thursday.

Bassem Abdul Karim, director general of state-run BOC, said Iraq's oil ministry and Halliburton are expected to sign a confidentiality agreement in the coming days, after which Iraq will provide Halliburton with data on the Nahr Bin Omar field and its installations.

Under the deal, Halliburton will help Iraq in increasing production at the field to 300,000 barrels per day (bpd), Abdul Karim said, though he did not specify a timeline. The field currently produces around 50,000 bpd, Reuters reported.

"Halliburton will also help Iraq to produce 300 million cubic feet of gas from the field", said Abul Karim.

Abdul Karim said oil production at the West Qurna 1 field, operated by PetroChina in southern Iraq, is expected to reach 750,000 bpd by the end of 2025, up from the current 550,000 bpd. PetroChina holds the largest stake in the field following Exxon's exit.

To reduce its gas import bill, Iraq has selected China Petroleum Engineering & Construction Corporation (CPECC) to develop a $1.7 billion gas project at the Nahr Bin Omar field, which will produce 300 million standard cubic feet (mscf) of gas, according to the BOC manager.

"We are in talks with CPECC to reduce the project's cost, and final signing is imminent," he said.

Asked about the impact of the latest sanctions targeting Russia on the global crude supplies and if Iraq is ready to lift production, Abdul Karim said Iraq has the capacity to increase its oil production by 200,000 barrels per day (bpd) immediately if asked by OPEC.

Iraq's oil exports from its southern ports averaged 3.232 million bpd in December, he added.