Production could start by 2022 at Russian industrial zone in Egypt

Production could start by 2022 at Russian industrial zone in Egypt
This picture taken on July 9, 2019 shows tankers and cargo ships navigating through the Great Bitter Lake in the Suez Canal southwards towards the Egyptian port city of Suez. (AFP)
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Updated 19 October 2020

Production could start by 2022 at Russian industrial zone in Egypt

Production could start by 2022 at Russian industrial zone in Egypt
  • Russia’s ambassador to Egypt, Georgy Borisenko, said 32 Russian companies are interested in the zone
  • The project requires that 90 percent of the jobs created by the zone be filled by Egyptian workers

CAIRO: Production could begin at a Russian industrial zone in the Suez Canal Axis development as soon as 2022, if final negotiations to establish the zone are completed in the coming year, according to Georgy Borisenko, Russia’s ambassador to Egypt.

He told Egyptian newspaper Al-Akhbar that the project is underway and, although there are still some details for Egyptian and Russian authorities to iron out, 32 businesses based in Russia are interested in establishing factories and storage facilities there. They operate in fields such as food, plastics and electrical appliances. Egypt will benefit from the creation of jobs for local workers, he said, and the transfer of Russian technology in a number of fields.

“These are private-sector companies that need commercial advantages and that is the reason for continuing discussions with our Egyptian counterparts to achieve the best position for Russian companies,” said Borisenko.

“Egypt requires that 90 percent of the workers in Russian projects be Egyptians, and the manufacture and export of more products with the (Made in Egypt) label to many countries that share free-trade zones with Egypt. Russian companies will reap profits from their projects.

“Currently, negotiations are underway to conclude several agreements, which we hope will end next year. If they go as smoothly as we hope … work will start in the Russian industrial zone and the first production will (take place) in 2022 — not from all the factories because some need more time.”

The ambassador said that Russia has a keen interest in enhancing trade relations with Egypt, which it considers the main gateway to Africa.

“Egypt accounts for a third of the volume of Russian trade with Africa and we are interested in strengthening our economic relations through several projects, such as the Russian industrial zone and several major contracts, such as supplying 1,300 railway cars through the Russian company Transmash, in partnership with Hungary,” he added.

Borisenko also noted that construction work is continuing at El-Dabaa on Egypt’s first nuclear power plant.

“It must be noted that nuclear plants need a long time to be built,” he said. “It is natural that building a nuclear plant takes at least 10 years and, unfortunately, the outbreak of the coronavirus negatively impacted the plant’s construction schedule.”

He also indicated that it was possible that a Russian COVID-19 vaccine, when developed, could be manufactured in Egypt. The Egyptian Pharmaceutical Company has requested the vaccine, and it would be made available as soon as approval is granted by the Egyptian Ministry of Health, he added.

“We will be happy to supply more quantities of vaccine and help Egypt protect its citizens because the required quantity is not sufficient for the Egyptian people, who currently exceed 101 million,” said Borisenko.

“In the event that Egypt wants more, the matter is not only related to the supply. The Russian Direct Investment Fund may give a license to manufacture the vaccine in Egypt, which will be a great benefit to Egyptian companies, providing job opportunities and giving Egypt the opportunity to be a center for exporting the vaccine to African countries.”


UAE’s Mubadala Petroleum signs Red Sea oil exploration deal with Egypt

The agreement, signed by Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, allows the company to explore in a 3,084 square kilometer area of the Red Sea. (Shutterstock/File Photo)
The agreement, signed by Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, allows the company to explore in a 3,084 square kilometer area of the Red Sea. (Shutterstock/File Photo)
Updated 23 January 2021

UAE’s Mubadala Petroleum signs Red Sea oil exploration deal with Egypt

The agreement, signed by Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, allows the company to explore in a 3,084 square kilometer area of the Red Sea. (Shutterstock/File Photo)
  • It will own 27 percent of the stake as part of the agreement, while Shell will own 63 percent

CAIRO: The UAE’s Mubadala Petroleum Company has signed an agreement with Egypt to explore for oil and gas in the Red Sea.

The agreement, signed by Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, allows the company to explore in a 3,084 square kilometer area of the Red Sea and was a result of a bidding round in 2019.

It will own 27 percent of the stake as part of the agreement, while Shell will own 63 percent. Egypt’s Tharwa Petroleum Company owns the remaining 10 percent.

The agreement refers to an area known as Sector 4, located in the north of the Red Sea in an area adjacent to the Gulf of Suez Basin, which is rich in natural resources. 

Parties will commit to conducting exploration studies in this sector and collecting seismic data for the area, using three-dimensional techniques, during the first three years of the exploration phase.

“The addition of Sector 4 in the Red Sea represents a new extension of our operations in Egypt, while providing a valuable opportunity to expand our activities, and by working with a strategic partner such as Shell,” said Mubadala Petroleum CEO Bakheet Al Katheeri. “The search and exploration operations in this sector, if successful, will support our strategy of extracting and manufacturing hydrocarbons, in order to contribute to supporting the stability and expansion of the Egyptian market, while providing growth opportunities for our operations in the country.”

Mubadala Petroleum owns a 10 percent stake in the offshore Shurooq gas field concession that includes the Zohr natural gas field, in addition to 20 percent in the concession area of Noor Gas Company. Both are located in the Mediterranean Sea off the coast of Egypt.