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Tuesday, 24 April 2018

Major Russian gas producer exits Egypt

Political instability in Egypt scares away Russia's second-largest natural gas producer

Ahram Online, Saturday 23 Feb 2013
Views: 1784
Views: 1784

Russia's largest independent natural gas producer, Novatek, decided to exit the Egyptian market and end its production activities due to the country's political instability and the deteriorating security conditions, says Anatoliy Chomachka, a diplomatic representative at the Russian embassy in Cairo.

"This is just another missed investment opportunity for Egypt; the country has witnessed the withdrawal of major investments since the January 2011 uprising," the Cairo-based diplomat told Aswat Masriya, a Reuters affiliate.

Novatek began exploratory drilling at Al-Arish offshore prospect in Egypt at the end of 2009 and announced it would pump almost $40 million in drilling activities up until 2012.

The Russian gas producer evacuated some its staff during the events of the Egyptian revolution and its drilling activity was halted at several times in Al-Arish region.

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