Egypt lures in IOCs

The cornerstone of the country's energy reforms aims to tempt foreign firms wary of setting foot in the Egyptian market

The crux of Egypt's ambitious energy reform has been a better deal for upstream international oil companies (IOCs). Stung by the failure of exploration rounds in 2012 and 2013, Cairo has guaranteed a higher minimum price for offshore producers. The old minimum price of $2.73/mn Btu has been replaced by $3.95/mn Btu to give IOCs a stronger incentive to invest. The pricing hike, and other liberalisations, have seen a surge in exploration, led by the four IOCs that already dominate Egyptian production. Eni, flush from finding the 30tn ft³ Zohr field in 2015 last summer surveyed another field, Nour, 31 miles off Suez, although both the company and the Egyptian government are tight-lipped about r