Egypt signs lucrative gas deals

Natural gas plays a significant role in achieving economic returns, in addition to attracting new international companies to work in the field of research and exploration in Egypt. (Shutterstock)
Short Url
Updated 21 September 2020

Egypt signs lucrative gas deals

  • Five agreements were signed during the last fiscal year

CAIRO: The Egyptian Natural Gas Holding Company (EGAS) has signed eight research and exploration agreements with investments of $934 million.

Five agreements were signed during the last fiscal year and three others during the first quarter of this fiscal year.

Minister of Petroleum and Mineral Resources Tarek El-Molla said that the integrated strategy adopted by the ministry to develop Egypt’s natural gas resources has succeeded in recording the highest rates of natural gas production in the history of the country, achieving gas self-sufficiency and resuming exports.

He said that natural gas plays a significant role in achieving economic returns, in addition to attracting new international companies to work in the field of research and exploration in Egypt.

El-Molla said a project to transform Egypt into a regional center for the handling and trade of gas and oil is being planned.

The minister stressed the importance of implementing the national project for providing natural gas to all Egyptian governorates and citizens.

Magdy Galal, EGAS head, reviewed the development of natural gas production rates during the past five years and the efforts to confront the natural decrease of wells.

He said that during the recent fiscal year, the company signed a total of five agreements. On top of the $934 million in investments, there were also signing grants worth $51 million.

He added that the company has 37 ongoing agreements, a result of a Ministry of Petroleum and Mineral Resources strategy, which attracted new investments and the entry of Exxon Mobil and Chevron in the field of research and exploration in Egypt, and an increase in investments from companies such as Shell and Total.

He said the company is finalizing six other agreements with investments of $731 million and $14 million in signing grants.


Ice cream sales deliver cool quarter for Saudi Arabia’s Sadafco

Updated 30 min 7 sec ago

Ice cream sales deliver cool quarter for Saudi Arabia’s Sadafco

  • Second-quarter net profit rose 7.9 percent to $18.7 million

LONDON: Ice cream sales helped to boost earnings at Saudia Dairy and Foodstuff (Sadafco) in the second-quarter as the food processor maintained its market share in the Kingdom.

Second-quarter net profit rose 7.9 percent to $18.7 million (SR70.2 million) compared with a year earlier, the company said in a stock exchange filing.

Food companies worldwide have had mixed fortunes this year as lockdowns helped to boost sales across many product lines while logistical problems hampered attempts to satisfy customer demand.

Sadafco said sales of both ice cream and consumer milk rose 2 percent over the quarter while tomato paste sales jumped by 15 percent. Its gross profit margins were broadly in line with a year earlier at 33 percent.

“Our performance this quarter and this period continues to strengthen over last year,” the company said in a statement on Tuesday.

However, it said that the tripling of value added tax (VAT) in the Kingdom had a significant impact on shopping basket cost.

Sadafco is expanding operations in Saudi Arabia with the construction of a new ice cream factory and the planned acquisition of Horizon Food Factory.

It currently operates two factories in Jeddah and another in Dammam.