Egypt plans to start privatization of its state-held oil companies

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Egypt’s officials are going to announce privatization of the state-owned oil companies in the nearest future. The country’s government is planning to raise US$10 billion from listings in three to five years, Bloomberg reported on Monday, quoting Egypt’s Minister of Investment Dalia Khorshid as saying in an e-mailed reply to questions.

Egyptian authorities have now started reviewing companies that might take part in the initial public offerings (IPOs) program. It is noted that many organizations will be restructured to get included into the IPO list, starting with electricity companies.

In august, Egyptian Oil Minister Tarek El Molla said in an interview that the country’s government had sent the names of eight petroleum companies to the Ministry of Investment to be studied to issue their shares on the bourse or increase their capital.

“Among the names we are studying are Middle East Oil Refinery (MIDOR) and the Egyptian Ethylene and Derivatives Company, and we are considering a capital increase for companies Alexandria Mineral Oils Co., MIDOR, and Misr Fertilizers Production Company,” El Molla said.