Petronas Operations in Egypt
Petronas' entered Egypt in 2001 after it was awarded the North East Mediterranean Deepwater Block by the Egyptian government. As of late 2012, Petronas produced about a quarter of Egypt's total gas from the West Delta deep-water concession, in which it holds a 50 percent share along with partners Egyptian General Petroleum Corporation (EGPC) and BG Group.
The company undertakes exploration, development and production in Egypt and is also involved in several liquefied natural gas (LNG) ventures: it holds a 35.5 percent stake in the El Behera Natural Gas Liquefaction Company and a 38 percent stake in the IDKU Natural Gas Liquefaction Company, both of which manufacture and produce LNG for export. It also holds a 35.5 percent stake in the Egyptian LNG Company, which owns, manages and develops the land and the common facilities related to the Egyptian LNG facility at Idku, about 50 kilometers east of Alexandria. Petronas' partners in Egyptian LNG are Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Company (EGAS), BG Group, and Gaz de France.
Reserve and Debt Issues
Petronas' overall profit in 2012 dipped 14 percent due partially to the impairment of its investments in Egypt: the company's reserve estimates in the country were reduced, and the government was forced to delay payments to the company as more produced gas went to satisfy increasing domestic demand rather than earning revenue as an export. But in January 2013, Prime Minister Datuk Seri Najib Razak said Egypt was keen to collaborate with Petronas to discover more oil and gas in the future.
Debt Owed by Egyptian Government
In February 2013, the government signed agreements with Petronas and BG Group to reschedule debt owed by Cairo, the minister of petroleum, Osama Kamal, reported according to Reuters, though he did not say how much debt had been rescheduled. Consultancy Exclusive Analysis estimated that oil producers working in Egypt are owed $9 billion, though Kamal disputed the figure at a later news conference.
- "Egypt", Petronas website, 2011.
- "PETRONAS Increases Investments in Egypt", Yalla finance, 12 December 2012.
- "West Delta Deep Marine Concession", SubSea IQ, retrieved 11 June 2013.
- "2011 Annual Report", Petronas, 2011.
- "Highlight: Petronas’ 2012 profit dips 14%", The Edge Malaysia, 8 March 2013.
- "Egypt keen on tie-up with Petronas to seek new oil fields in Africa", The Edge Malaysia, 25 January 2013.
- "UPDATE 1-Egypt says has signed debt deals with Petronas, BG Group", Reuters, 19 February 2013.