Egypt’s oil output fell to just 608,000 b/d for March and 620,000 b/d for Q1, the lowest respective figures since 1982 (see chart 1). The 12 March decision of key producer Apache to take a tomahawk to its 2020 global spending plans appeared to presage further severe pain for Egypt’s upstream (MEES, 13 March).
Then, on 11 May oil minister Tarek el Molla called on firms active in the country to cut spending and production costs – as if they needed encouragement to do this. Egypt’s system of joint ventures with the IOCs active in the country means the state is on the hook for a share of costs, and as elsewhere, Egypt’s finances are heavily stretched (MEES, 15 May). (CONTINUED - 997 WORDS)