Egypt’s oil output has been on a downward trajectory since 2015 as investment slumped in the wake of oil prices halving the previous year. Last year’s Covid-induced collapse in oil prices and investment provided a further kick in the teeth.
As output last year fell below 600,000 b/d for the first time since 1980, Cairo was prompted to improve terms for oil producers in a bid to spur renewed investment. Egypt has recently penned improved concession agreements with top oil producer, Texas-based Apache (MEES, 14 May) and Italian firm Eni for Western Desert concessions (MEES, 18 June) as well as with smaller firms like Canada’s TransGlobe (MEES, 17 December). (CONTINUED - 597 WORDS)