Rationalising expenditure and lowering production costs in Egypt and globally is a necessity to face challenges by the petroleum industry due to the coronavirus pandemic, Petroleum Minister Tarek El Molla said on Monday.

In an official statement, El-Molla stressed on the importance of rationalising spending amid the crisis due to a sharp drop in global oil prices and a rising surplus of oil in global markets.

His statements came during an assessment meeting for top crude oil producing companies, including Petrobel, Gulf of Suez Petroleum Co (GUPCO) and others on current production rates in comparison to output targets.

El-Molla affirmed the importance of revising petroleum production plans, working on increasing efficiency and achieving the maximum benefit from assets and available production facilities.

The minister said continued work on drilling exploratory wells for new crude oil discoveries is the main means of increasing production rates.

He stressed on the necessity of executing projects agreed on with foreign partners, and working on resolving difficulties that could hinder projects.

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