Egypt’s gas production has started to decline at a slower rate and is expected to recover following significant discoveries by global companies operating in the Arab country, its petroleum and mineral resources minister has revealed.

Karim Badawi said foreign operators have made progress in oil and gas discoveries as they have been encouraged by Cairo’s commitment to pay their dues on time.

Badawi, speaking at a meeting with heads of those companies in Cairo on Thursday, said the decision by President Abdel Fattah Al-Sisi to regularly pay foreign partners would boost investor confidence and encourage them to pump more investments.

“The joint efforts with our partners in the oil and gas sector have contributed to reducing the decline in gas production, achieving stability, and beginning the journey back to high production rates,” the minister said in comments published by the local press.

“The recent period has witnessed positive developments, including the commencement of seismic survey operations with approved exploration commitments, and Egypt's success in equipping and operating floating storage and regasification units, enabling it to meet peak summer consumption without interruption or load shedding.”

Egypt’s gas production reached peak levels a few years ago before it started to decline due to lack of discoveries and a surge in domestic consumption.

On Monday, Reuters reported that Egypt signed oil and gas exploration deals worth more than $121 million.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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