RE: Fitch report6 Feb 2020 08:38
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Dr. Mustafa Madbouly, Prime Minister, reviewed a report from the Information and Decision Support Center, on the results of reports issued by the Fitch International Credit Rating Agency in January 2020, which dealt with the reality of the Egyptian energy market, and highlighted the expectations for the track of the mining and energy sectors in the short time period, And made a set of predictions during the next eight years, according to their economic indicators, in light of the current situation and the latest developments.
Osama Al-Gohary, Assistant Prime Minister and Acting President of the Center, stressed that the Egyptian reality witnessed several developments during the past years, which contributed to improving the optimistic expectations presented in the reports of the Fitch Foundation, as LNG exports in Egypt increased by about 450% during the months. The first five of 2019 compared to the previous year, resuming the country's position as a net source, along with increased production.
El-Gohary explained that at the end of 2019, EGAS granted five blocks for gas exploration to international companies: Shell, Exxon Mobil, Petronas, BP, DEA and Eni, and the companies committed to drilling 21 wells as part of the licensing terms, and oil exploration blocks were awarded to Neptune Energy, Merlon and Eni as well as the General Organization Egyptian Petroleum, Shell obtained three of them, and the companies later pledged to drill at least 39 wells.
Regarding the gold mining sector, the Acting Head of the Information and Decision Support Center pointed out that Fitch expected that the gold mining sector will witness a strong expansion in terms of increasing production and benefiting from international experiences in this sector, pointing out that more is expected to flow From investments to the Egyptian mining sector following the amendment of the Mineral Resources Law No. 198 of 2014, whereby the fees imposed by the government on companies that invest in the mineral wealth sector have been reduced to a maximum of 15% and a minimum of 5%, after the ratio was 20% under the law The old one, which encourages more investors N to pump their money into this sector.
Al-Gohari added that Centamin is expected to become a major player in developing the mining sector in Egypt during the next few years, relying on the Diabetes Mine.
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