No need to rely on multinationals for oil exploration, USGS advises Egypt

The US Geological Survey (USGS) has advised Egypt not to grant oil exploration concessions–or any share of its oil production–to international companies, but rather carry out the dual tasks of exploration and production on its own.

It also recommended that Egypt keep 110 percent of its domestic oil and gas needs and export the remainder.

In its May report, the USGS noted that Egypt had large quantities of oil and natural gas in the Nile Delta and the Mediterranean that had not yet been adequately explored and which should be given priority.

“Explorations cost billions of dollars, which international companies incur against a percentage of sales in case they find oil,” explained oil expert Salah Hafez.

Oil expert Ibrahim Zahran agreed that Egypt should rely on itself to carry out explorations. “These companies end up taking much more than what they spend,” he said.

Translated from the Arabic Edition.

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