One effect of the global glut in oil supplies has been the laying up of ships and oil tankers waiting for cargos at the important Ras Sukier oilfield in southern Egypt.
ANDERSON: (MUTE): FEB 25: RAS SUKIER.
GVs Oil tankers tied up in dock and offshore. (2 SHOTS)
GV PAN Oil tanks at Ras Sukier
FAHMY: (SOUND): FEB 26: ARCUBA PALACE, CAIRO
GV Palace exterior.
SV PAN INTERIOR Seated members of Egyptian Cabinet, with President Mubarak at head of table.
CU Mubarak PULL BACK TO SV Cabinet.
SCU Military guard.
SCU Egypt's Oil Minister Ezzeddin Hillal, speaks. (SOT)
ANDERSON: (MUTE): FEB 25: RAS SUKIER
GV Oil storage tanks.
TRANSCRIPT: HILLAL: (SEQ 7) "Nobody speaks about war. We say oil prices affect Egypt."
QUESTION: "Would it cause a crisis in the Egyptian economy?"
HILLAL: "No. Not crisis. It would just reduce everything as usual because we depend on the export of oil for the economy of Egypt. But don't forget that Egyptian economy when we talk about that income, represents only two per cent of the total income. This is oil. So what we will be affecting is the export of oil which really reflects a reduction on what we estimated in 1982-83."
Script is copyright Reuters Limited. All rights reserved
Background: One effect of the global glut in oil supplies has been the laying up of ships and oil tankers waiting for cargos at the important Ras Sukier oilfield in southern Egypt. Each of the installation's oil tanks can store up to half a million barrels of oil. Although the plant covers an area 60 kilometres by 40 kilometres, the exact quantity of oil produced there each year is a closely guarded national secret. The world's oil crisis and subsequent price reductions were high on the agenda when President Hosni Mubarak set senior Cabinet ministers in the Arouba Palace in Cairo on February 26. Also at the meeting were the Prime Minister, Doctor Salaheddin Hamid, Minister of Economy and Foreign Trade, Doctor Moustafa El Said, Investment Minister, Doctor Wagih Shindi, Planning Minister, Doctor Kamal el Ganzouri, Prime Minister Fuad Mohhieddin, and the Oil Minister, Ezzedin Hilal. Egypt has cut the price per barrel of its top grade oil to 29 U.S. dollars from February 1, the third consecutive monthly reduction since November 1982 and Mr. Hillal discussed the possibility of further price cuts later this year with his colleagues. He said he expected revenue from oil to drop by 500 million U.S. dollars this year, but added that this would not greatly disturb the country's economy. Egypt is not a member of the Organisation of Petroleum Exporting Countries (OPEC) and oil is its largest foreign currency earner, bringing in an annual revenue of three billion U.S. dollars. Egypt produces about 700,000 barrels of oil daily, much of which is stored in Ras Sukier, before being sold around the world.