Planning Ministry Unveils Petroleum Sector Investment Plan for FY 2023/2024

The Ministry of Planning and Economic Development has released a report on the targets and investments in the petroleum and mineral resources sector for the fiscal year 2023/2024. Dr. Hala El Said, Minister of Planning and Economic Development, emphasized the importance of the sector as the main source of energy generation, meeting the needs of all productive commodity and service sectors, as well as final consumer markets for petroleum products and gases, in addition to its role in developing the state's foreign currency reserves through its export activity.

El Said explained that Egypt's Vision 2030 identified 7 promising sectors to act as drivers for economic growth, including the petroleum sector due to the importance of its outputs in securing one of the basic requirements for the sustainability of growth in other economic sectors, increasing their competitiveness, and meeting the growing population's needs for fuel and petroleum products of various kinds.

Regarding the targeted investments for the year 2023/2024, the report clarified that the plan includes investments totaling 99.6 billion pounds for extraction development during the year 2023/2024, including 22.4 billion pounds for crude oil extraction activity, 65.4 billion pounds for gas extraction, compared to 11.8 billion pounds for other extractions. The private sector accounts for about 84% of the total sector investments, compared to 16% for public investments.

As for the mid-term and second year 2023/2024 plan targets in terms of production, the report added that the sector's plan aims to increase production at current prices from extractions of crude oil, natural gas, and other extractions from 939 billion pounds expected in 2022/2023 to 1,090 billion pounds in 2023/2024, with a growth rate of 16%, with production increasing at the end of the plan to reach approximately 1.288 trillion pounds in 2025/2026, with an average annual growth rate of 18.5%, with production estimated at approximately 664 billion pounds at constant prices in 2023/2024, compared to the expected 655 billion pounds in 2022/2023, with a growth rate of around 1.4%, targeting production to reach about 692.5 billion pounds at the end of the plan in 2025/2026, with an average annual growth rate during the plan years of about 1.5%.

Regarding the sector's GDP, the report explained that the plan aims to reach the GDP of the extraction sector at current prices to around 960 billion pounds in 2023/2024, compared to the expected 826 billion pounds in 2022/2023, with a growth rate of 16.2%, to reach about 1.14 trillion pounds by the end of the plan, with an average growth rate approaching 20% during the period. The sector's GDP is estimated at about 573 and 598 billion pounds in 2023/2024 and 2025/2026 respectively at constant prices according to the report, with an annual growth rate of 1.2% for the first year and an average annual growth rate of 1.25% over the extended period until 2025/2026.