Egypt hedges one-third of its oil needs to hold the price

September 4, 2023

(3 minutes read)

Egypt hedges a third of its oil and petroleum needs for fiscal year 2023-24, which amounts to 35 percent, to avoid rising international oil prices

Egypt hedges a third of its oil and petroleum needs for fiscal year 2023-24, which amounts to 35 percent, to avoid rising international oil prices.

The hedging contracts that were agreed to be executed ranged between US$75 and US$80 per barrel, and about 35 percent of the total oil needs that the country imports from abroad each year, amounting to 100 million barrels, have been hedged.

Egypt decided to adopt the price of a barrel of oil at US$80 in the budget for the current fiscal year, a decline of 15 percent from the price of a barrel in the previous budget, while the price of a barrel of oil currently ranges between US$85 and US$86 in international markets.

Minister of Petroleum and Mineral Resources Tarek El-Molla announced that 35 new natural gas wells will be drilled during 2024-25 with investments exceeding US$1.5 billion, to increase production rates and reserves.

The drilling of 10 wells was completed during 2022-23 and resulted in a number of discoveries, the most important of which was the discovery of Nargis in the Mediterranean with reserves of about 2.5 trillion cubic feet of gas.