Egypt, Italy Discuss Bilateral Cooperation in Oil, Gas Sector.
Petroleum and Mineral Resources Minister Tarek el Molla had talks with Italian Ambassador to Egypt Michele Quaroni on boosting bilateral cooperation in the oil and gas sector.
In statements on Tuesday, the minister said that Italian company “Eni” is Egypt’s main partner in the petroleum sector, underlining its vital role in the oil and gas industry in the country.
Over the past years, Eni notably beefed up its investments in Egypt in various domains, the minister added.
The minister and the Italian diplomat discussed progress made so far in projects by Eni company in the Mediterranean, the Gulf of Suez and the Western Desert in the field of oil and gas exploration and exploitation.
They also discussed bilateral cooperation in exporting liquefied natural gas (LNG) through Damietta SEGAS LNG Terminal.
They reviewed activities of other Italian companies operating in Egypt through cooperation in designing, implementing and financing new projects to develop and expand oil refineries, in partnership with Technip Energies Italy S.p.A. and the Italian Export Credit Agency (SACE).
For his part, ambassador Quaroni expressed keenness of the Italian companies to beef up investments in Egypt in light of the country’s strategy to become a regional energy hub.
Presidential decree authorized the Minister of Economy Alamine Ousmane Mey to sign an €83.5 million (XAF55 billion) Murabaha financing agreement [ed. note: a sort of credit sale agreement] with the International Islamic Trade Finance Corporation (ITFC), a subsidiary of the Islamic Development Bank (IsDB).
The monies thus raised will fund SONARA’s import of oil products. Indeed, since May 2019 when a fire outbreak destroyed part of SONARA’s petroleum products refining plant, Cameroon has been importing all of the finished petroleum products consumed on the national territory. In that regard, every quarter, the country launches a call for tenders to select oil traders who would supply the products needed.
For public authorities, such supply mechanisms have proven beneficial given that it helps record substantial savings. According to figures published by the Ministry of Water and Energy, between June 2019 and June 2020, the country saved XAF150 billion, meaning an average of XAF25 billion saved quarterly.