EGP 99.6bn allocated for petroleum sector development in 2023/24

Hala El-Said, the Minister of Planning and Economic Development, announced that the fiscal year 2023/2024 will see EGP 99.6bn invested in the petroleum and mineral wealth sector for extraction development. This investment underscores the sector’s vital role in energy generation, supporting various productive sectors, and enhancing Egypt’s foreign currency reserves through exports.

During a report by the Ministry of Planning and Economic Development, El-Said highlighted that Egypt Vision 2030 identifies the petroleum sector as one of seven key areas driving economic growth. The sector’s output is essential for meeting the fuel and petroleum product needs of Egypt’s growing population and for maintaining the competitiveness of other economic sectors.

For the fiscal year 2023/2024, the investment plan includes EGP 22.4bn for crude oil extraction, EGP 65.4bn for gas extraction, and EGP 11.8bn for other extractions.

The mid-term production goals for 2023/2024 aim to increase the sector’s output from EGP 939bn in 2022/2023 to EGP 1.09trn in 2023/2024, marking a 16% growth. By the end of the plan in 2025/2026, production is expected to reach approximately EGP 1.288trn, with an average annual growth rate of 18.5%. At constant prices, production is estimated at EGP 664bn in 2023/2024, a slight increase from the expected EGP 655bn in 2022/2023. The plan targets a production value of EGP 692.5bn by 2025/2026, with an average annual growth rate of about 1.5%.

In terms of the sector’s Gross Domestic Product (GDP), the goal is to achieve a GDP of EGP 960bn in 2023/2024, up from the expected EGP 826bn in 2022/2023, reflecting a 16.2% growth. By the end of the planning period, the GDP is projected to reach EGP 1.14trn, with an average annual growth rate of 20%. At constant prices, the GDP is estimated at EGP 573bn in 2023/2024 and EGP 598bn in 2025/2026, with an annual growth rate of 1.2% and an average annual growth rate of 1.25% until 2025/2026.