The establishment of a joint Egyptian-Libyan oil company was recently approved by Egyptian Free Zones and Investments General Authority.
The new Arab Oil and Gas Pipes Company (referred to locally as “Tubes”) will transport Libyan crude to Egypt and Egyptian natural gas to Libya.
Furthermore, ownership of the enterprise will be shared equally between the Egyptian petroleum sector and the Libyan National Oil Corporation, reports KSA Today.
Egypt’s Minister of Oil Sameh Fahmi agreed to establish the company in the form of an Egyptian joint stock enterprise by $100 million authorized capital and $10 million issued capital. Moreover, Fahmi added, during the firm’s first phase of operation, $20 million will be allocated to pipeline construction between the two countries
Egypt has an estimated 4,200 trillion cubic feet of natural gas reserves; Libyan oil production capacity is estimated at 1.6 million barrels a day. –(MENA Report)
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