Egypt has allocated total investments of EGP 65.3 billion for the petroleum sector in the current FY2021/2022, including EGP 48.7 billion for extraction activities and about EGP 16.6 billion for petroleum refining activities, at a rate of about 75 percent and 25 percent respectively, Minister of Planning and Economic Activity Hala El-Said announced on Monday.

Minister El-Said reviewed in a report the key targets of the petroleum and mineral resources sector in the plan for FY2021/22, which is the fourth and final year of the medium-term plan for sustainable development (FY2018/2019 – FY2021/22).

Regarding the quantitative targets of the sector, the report indicated an increase in production in the extractive sector (crude oil, gas, and other extractions) and the petroleum refining industry by 10 percent at current prices to about EGP 1.31 trillion in FY2021/22.

It is estimated that the output of extraction activities and oil refining amounted to about EGP 710 billion at current prices in the year of the plan, compared to EGP 642.5 billion expected in FY2020/21, achieving a growth rate of 10.5 percent.

The report added that the FY2021/22 plan includes the production of about 3.44 million cubic feet of crude oil, condensate, and butane, about 2.6 trillion cubic feet of natural gas, 4.37 million tons of petrochemical products, and 13 million tons of mineral ores.

Concerning the development vision of the petroleum sector, El-Said clarified that it is to secure the country’s needs for petroleum materials to keep pace with the requirements of sustainable development, maximise the petroleum sector’s contribution to the national income, and transform Egypt into a strategic centre for energy trading.

She also noted that the sector's strategic objectives are securing the local market's needs for petroleum products, petrochemicals, and mineral resources in line with the targeted economic growth rates, in addition to securing oil and natural gas supplies through the expansion of research and exploration activities and diversification of sources.

“The petroleum sector is one of the mainstays of economic growth, as it is a major source of providing the state's energy needs, which contributes positively and directly to meeting the requirements of sustainable and comprehensive economic development plans adopted by the Egyptian state,” the minister said.

She added that the importance of this sector is manifested in its bearing the responsibility of securing the needs of all economic sectors and final consumption markets, as well as strengthening the trade balance by developing its exports to foreign markets and rationalising its imports from them in a sustainable manner consistent with the consumption needs of the growing population and the requirements of the country’s ambitious development plans.

The report also touched upon the development of the petrochemical industries to raise production rates, increase value added and improve production quality, in addition to accelerating rates of implementation of gas delivery projects to homes to maximise the benefit of all citizens and regions from natural gas supplies, in addition to transforming Egypt into a regional centre for the trading of gas and crude oil and rationalising the uses of natural gas.