Ukraine may withdraw from the oil business in Egypt

Украина может выйти из нефтяного бизнеса в Египте

Naftogaz was involved in the Egyptian project for almost ten years

Naftogaz has considered the option of selling the foreign asset, but there were no buyers.

Ukrainian Naftogaz needs to get rid of oil-producing assets in Egypt because they are not profitable. This was stated by the head of the state-owned Andriy KOBOLEV, transfers UNIAN.

“It (the oil business in Egypt) can be developed, and it is possible to get out of it… I think of it, you must go,” – said KOBOLEV, noting that today, this business does not bring profit to the holding company.

KOBOLEV also said that Naftogaz has considered the option of selling the foreign oil business, but it was not the potential buyers.

In March of this year KOBOLEV said that Naftogaz wants to reduce the costs of its oil assets in Egypt due to low oil prices. He also said that he sees no sense in selling a foreign company under the current situation in world oil prices.

Recall that Naftogaz was involved in a project for exploration and production of hydrocarbons in the deserts of Egypt in 2007 under a concession agreement. Since 2012 this project is managed by a joint company Petrosannan Company. In 2015, the firm increased its production of raw materials, compared with 2014, 20.7% of oil, having produced 318 thousand tons, and almost four times for gas, received a 192 million cubic meters.

As reported Корреспондент.netGTS Ukraine devalued five times without transit of Russian gas. The implementation of such a scenario is possible in the case of construction of Nord stream-2 and the two branches of the Turkish stream.