The Canada Egypt Business Council “CEBC” hosted its second event in the series of events discussing the impact of the global economic crisis on different business sectors in Egypt, at the Nile Hotel on a special dinner and panel discussion, featuring keynote speaker H.E. Eng. Sameh Fahmy, Egypt’s Minister of Petroleum, as well as a number of prominent guest speakers from the Egyptian oil and gas sector to discuss the topic of “Petroleum in the Shadow of the Global Financial Crisis”.

More than 400 distinguished guests and members attended the event, prompted by the upheaval in global markets, aiming at highlighting the impact of the world economic financial crisis on Egypt’s oil & gas sector shedding light on critical issues such as the low oil prices affecting a number of infrastructural projects in Egypt and the Gulf area and seen as the bread and butter of Middle Eastern countries, the steep decline in oil prices is translated as lower windfall gains and lower foreign exchange reserves that could eventually mean lower spending on infrastructure projects in the coming period. Other questions were raised such as…where is Egypt on the Petroleum’s Map now??… and to what extent are we affected.

Mr. Motaz Raslan, Chairman of CEBC, delivered his opening remarks by highlighting this sector’s influence over infrastructure development, mentioning the fact that it is a vital source for job creation.

Minister of Petroleum Sameh Fahmy firstly praised the cooperation between Egypt and Canada in the oil and mineral resources fields, noting that it is moving forward with steady steps. “Seven Canadian companies specialized in oil exploration and production are working in Egypt”, Fahmy noted.

The minister then turned to the impact of the international financial crisis on the oil industry, saying that the downturn has imposed heavy challenges on oil producing countries. Several projects were postponed or stopped due to the decline in oil prices, which will result in the reduction of production capacity on the international level. “Yet, it is not all bad news for the oil sector”, Fahmy believes.
The minister also stated that the Egyptian Petroleum Sector had witnessed rapid progress and has the capability to face up to the current international financial crisis, and that the oil sector’s advanced strategy helped Egypt face the negative impact of the global financial crisis,” said the Minister.

He stated that the gas industry in Egypt is booming, and that recently many foreign companies are intensifying their oil and gas exploration activities.

The Minister also clarified that the oil sector works on catering the gas needs of energy-consuming sectors.

Minister Fahmy then joined a panel discussion with prominent speakers, veterans of the oil and gas sector featuring Mr. Tim Blackford, President, BG Egypt, Dr. Hany Elsharkawi, President, Dana Gas Egypt, Mr. Tom Walter, Chairman and Managing Director, fuels marketing, ExxonMobil Egypt and Mr. Miles Warner, Country Manager, Hess Egypt Companies.

The floor was then opened to questions raised from the audience, covering hot topics and inquiring whether the turmoil in global money markets will suppress the spending on major projects leading to a reduction in the volume of investments or not and if so, what are the measures taken by the ministry to confront the crisis and keep its oil and gas production rate at its normal levels? And if there are ministerial plans to further restrain subsides on oil products’ prices in a government’s attempt to remove some of the pressures on the state’s budget in light of the negative effect of the global financial crisis?