Egypt

AlMulla discussing spending cuts with "The whole Egyptian Petroleum Sector" companies

Published on : 2020-05-15

In continuation of the intensive work meetings held by Engineer Tariq Al Mulla, Minister of Petroleum and Mineral Resources, to follow up on oil production plans and deal with the current challenges of the sharp decline in world oil prices, the Minister chaired the second meeting during the month of May this year through video conferencing technology with the heads of the highest oil producing companies to discuss new mechanisms and ways to rationalize  Expenditure that takes into account the achievement of the targeted plans and the continuation of the implementation of petroleum projects for exploration and production, where the heads of Petrobel, Khaleda, Qaroon, Badreddin, Ajiba, Japco and General Petroleum companies participated in the meeting  Geologist Ashraf Faraj, First Undersecretary of the Ministry of agreements, exploration and engineer Abid Azalrjal, chief executive of the Petroleum Authority and his deputies for exploration, production and control of foreign and security companies, safety, and Eng. Osama Bakly Chairman of the Egyptian Holding Company for Natural Gas (EGAS) and his deputies for operations and production.

The meeting witnessed a review by the heads of companies of additional measures to rationalize spending to implement them in addition to the rationalization programs followed.

Engineer Tariq Al-Mulla stressed during the meeting the importance of these measures aimed at achieving harmonization and adaptation to the current changes in the global oil market and the sharp drop in the price of a barrel, which represents a challenge for the entire world and requires action to reduce its negative effects on Egypt, explaining that the measures will mainly help in reducing costs  Barrel production of crude oil, operating expenses, optimal utilization of resources, and employing modern technologies in the petroleum industry that support improved performance and lower costs.

He added that his meetings with the major production companies come with the aim of identifying unconventional ideas and initiatives put forward to reduce expenditures, noting that they will be formulated and adopted as an integrated model for application to various and other companies with less production levels, pointing to a meeting during the coming period with these companies to present ideas and initiatives that  Will be approved by large companies that are flexible and adapt to the prevailing challenges and they are not only reflected on the financial aspects, but also include improving the performance of the system and help focus on the system of increasing production and efficiency in implementing plans.  Of the importance of adhering to them to cross the current stage challenges difficult and take positive messages given to foreign partners confirm the existence of a vision for the petroleum sector to address the effects of these challenges and not to work towards a policy response action.

Al Mulla directed production companies during the meeting to discuss all available opportunities and expedite their exploitation to increase production rates. He also directed to continue taking all necessary measures and preventive measures to protect against corona virus infection in order to preserve the health and safety of workers.

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