Investment Decision-Making in the upstream petroleum

Industry

Management Accounting
Prof.Dr. Ahmed Farghaly
MOSTAFA MOHAMED FATHI GHAFFARI

MBA Student, Second Semester, Faculty of Commerce, Cairo University

Candidate number:- 626

Number of words:- 5455

Date:- 5/9/2020

Declaration
This research is entirely affair mine. It has not been demonstrated in any preceding application of
the degree. All the quotations in the research have been marked with quotation marks and the
fountains of data have been specifically recognized.
Signed …

Research content:-
- Abstract
- Keywords
- Introduction
- Main body
- Results and discussion
- Conclusions
- References

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Abstract
Financial accounting is the information that measures result of business activity, collect the data
and gathering it into reports, and forwarded the results to decision makers. Proper ways provides
by Managerial accounting to understand the activities of companies particularly have producing
activities. Managers and the owners of companies are supported with that information’s to get a
better view of companies financial data.

This paper aims to identify the managerial accounting ways used in the petroleum producing
companies in Egypt. In order to collect information, semi structured interviews have been
completed in major companies in the main petroleum company of Egypt.

The research begins filling the decision-making gaps using qualitative methods to find how much
follows. In the first place, the study identifies a method of analysis of the decisions that is applied
to the decisions of investment in the petroliferous industry and supplies then a description with
the present ability. In the second place, the study validates the tools of decision-making analysis
what the petroliferous companies have already chosen to use in the evaluation of the investments,
improving so the present practice model to take total decisions of investment

Approach /Design/Methodology
The data have been picked up sending 100 questionnaires to the senior heads of the department it
costs, like financial, bookkeeping managers, financial officials, staff of the department
accountancies of management, bookkeeping of management and audit interior. As well as
picking up financial relations. The picked up data are used to Analyse the phases of development
of the Oil and Gas Company (KPC)
This study has concluded that the Egyptian petroliferous companies prefer to invest in the raw oil
rather than in the natural gas, since the natural gas is used commonly in the Egyptian
manufacturing companies. This study has also discovered what the oil production is is that one of
gas they are useful for a correct and calculated decision-making process.

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Practical involvements/ value

Research supplies a further comprehension with the production and with the benefits of the raw
oil and fills the difference with research with regard to this problem, as well as presenting new
discoveries that can be used for further researches for the use and the usefulness of the production
of raw oil for the Egyptian petroliferous companies. as well as results contribute to a better
comprehension of the commercial advantage of his production and manufacture in the Egyptian
petroliferous companies.

Keywords: crude oil, Accounting management, decision making, company financial reports,
commercial, natural gas

1. Introduction
1.1 Decision making —choosing between alternative courses of act to achieve several objective
—accounting information assist answer problem solving (1) another fundamental element of the
management procedure is planning and controlling the organization’s operations.

1.1.1 Planning provides the answers to some questions: What is organization objectives and
want to achieve? How and when will the firm achieve these objectives?

1.1.2 Control divert to implementing plans also using returns result to evaluate the achievement
of objectives. Therefore, feedback is critical to the cycle of planning and control. Planning
regulate action, action cause feedback, and the control stage uses this feedback to effect further
planning and actions. Adequate, systematic reports given by the accounting system are a first
source of useful feedback.

1.2 The petroleum industry decision condition

The petroliferous industry is compared regularly to strong changes in the market and in the
political state what they ask for a regular control of the decisions of investment. To take the just
decisions on the expense in capital account has become more critical than never on these difficult
times. From a technological point of view, the corrupt and corrupt data make difficult to find

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information on real time at many necessary fountains to take good decisions of investment. The
ability of modeling the risk and foreseeing the timeliness is another critical aspect when capital
projects are carried out on a large scale.
Societies that use the management accountancy (BUT) with several methods and tools (agreed
and recent) to value the own operations. All the methods of company development to plan, to run
and to manage the operative costs and to reach the own objectives. We know that the methods are
important for the enterprises of success. (2)

1.3 Research finding goals

In this document, we will examine the methods that they will help to take a decision in the
petroleum companies and of the gas to indicate which is preferable to invest in oil or natural gas
according to the bookkeeping relations, including the cost of the capital and of the correlated and
not correlated costs, as well as who determines the real costs and Occupation in the attempt to
help to take decisions with commercial purposes and why to invest in the petroleum sectors.

1.4 decision making researches

The research on the decision-making won in popularity these last years and several studies were
published (for example, Ford and Gioia, on 2000; Gunn, on 2000; Ekenberg, on 2000; Milne and
Chan; on 1999). Although these studies are useful to give complete information on decision-
making process, the very small enterprises have to make definite decisions of investment in a
complex commercial climate where there are risks and uncertainties fundamental and where
every financial decision requires important expenses in capital without possibility of generating
them. Benefits for several years.

The decision-making analysis (Raiffa, on 1968; Howard, on 1968; Raiffa and Schlaifer, 1961) is
an indicator given to a defamatory and intuitive approach of the decision-making in case of risk
and of uncertainty (Goodwin and Wright, on 1991). By using the one or the combination of
techniques of analysis of decision, the decision-maker receives an indication of what should be
his decision of investment, on the basis of logical argument (Clemen, 1999) in the process of
investment decision-making, he must explore relation between organizational presentation and
use of the techniques of decision-making anatomy. Many analysts of decision (for example,

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French, on 1989) think that firms used the analytical to make decisions of investment of a way
which goes beyond those who do not make it, and that this research will hire theoretical speech
between the analysts of decision and of behaviour. The lack of theoretical value which does not
aim at predicting what the decision-makers are going to make, and it is clear that such a research
is also worthy of specialists.

2. Main body

2.1 Managerial Accounting

The accountancy of general management is defined like the bookkeeping information, like the
cost and the profit applied to the plans of management and control (Nishimura, 2005). The
bookkeeping management analysis supplies financial and not financial information to the
decisive ones. Besides, the management accountancy supplies report that include financial
forecasts and cost analysis for the managers of the organizations. This information is generally
very detailed (Chapman et to., 2007). Besides, the characteristics of the managerial accountancy
are the construction of bookkeeping informative systems as well as managerial informative
systems. Not only it is considered that it supplies data to the responsible persons of the decisions,
but it supplies also models with solutions and techniques for the creation of complex decisions.
The list of the accountancy of management spreads in the first place to the supply of prominent
more information over the planning, the control and the decision-making process and, in the
second place, it unwinds an important list in the decision-making and strategic process, since it
works in narrow contact with the managers (Mohamed et to., 2015).

2.2 Relevant and Irrelevant Costs

The data on the costs are important because the base of the decision-making process equipped to
maximize the profit or to obtain other objectives.

Not all the costs are still important in the decision-making process. The prominent costs indicate
what this will vary between different alternatives. The insignificant costs are those that will not
give any difference when an alternative is chosen compared to another one. (11)

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2.3 Non-Routine Decisions Types

The decision-making process is one of the primary functions of the management that includes the
choice of the future lines of action

The decision-making strategy implies the identification of methods and objectives a long time
term to reach it. It is the work of the managing maxima of the company. The decisions tactics are
decisions to middle term that are guided and you carry out the manager ship of middle level. The
operative decisions are daily affairs together with the activities of the organization.

The decisions tactics can or less be repeated (not of routine). (11)

2.3.1 Non-routine Decisions

Non-routine decisions examples.

2.3.1.1 Special Order) Accept or Reject (

Often a client puts a special request on the products of the company at inferior prices compared to
the usual one. If the company maintains the ability in excess, the approval or the refusal of the
order depend on additional costs and on additional entrances. If the additional income exceeds the
additional costs, the order is approved and, in the case in which the society is not able to increase
the ability, the additional costs must include the effect of the sales lost following regular sales to
evade the order special.

2.3.1.2 Buy a Product Component or Make it

The option at low price should be an option for any company. In general, the variable costs of
production of a component of the product compared to the purchase price to purchase it at an
external supplier's. Besides, it is considered that the avoidable fixed costs and the costs timeliness
depend on the case.
2.3.1.3 Process Further or Sell

The companies must face almost the decision of commercializing the product itself or of
elaborating it to sell it at a higher price. Besides, the product should be a result only when the
increase of the price of sale is greater than the additional cost in the working of the product.

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3.3.1.4 Drop or Add a Segment or Product Line
The branches of activity or the line of products must continue, if the income exceeds his costs. In
the definition of the costs, to determine the costs at the level of organization that should not be
considered since such costs would be whichever to cargo of the company with or without the
affiliate or the line of products.

2.3.1.5 Products mix to maximize the scarce resources

When it is in front of the decision of deciding which product to realize and to sell it under the
exciting limited resources (like hours of work, hours it plots, space, and so on), the company
must determine which product will create the highest edge of contribution (or higher) for unity of
scarce resource. You bear in mind that the whole ordering above uses pertinent cost ideas. There
are counted only the costs that differ in the choice of an alternative. These types of not repetitive
decisions are discussed in many things.

2.4 Present abilities in the petroleum industry:

The petroliferous industry has an active list in the growth of the Egyptian economy. The Egypt
has 627 barrels total reserves / day of raw oil and 7,2 milliard meters cubes / day of natural gas in
December 12 2019, according to the Ministry of the Oil. Plan The ability of the refinery should
reach 290,96 million tons in the year. In production terms, the production of lasted raw oil 2019-
10 has been 33,68 tons, compared to 30,50 tons in 2018-09, and the refinery production in terms
of objective of raw oil to be increased to cover all the demands with consumption is of about 41
tons in the month and the natural gas has increased. To 7,2 milliard metres cubes in 2019-10 of
6,2 milliard meters cubes in 2018-09, I date the consumption of Egyptian natural gas of about

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300 to 350 million metres cubes of 7,2 milliards.

Egypt oil production till 2020

The sales / lasted consumption of petroliferous products 2019-09 have been 30 tons (with sales
through private imports), an increase of 6,66 % compared to the 28 tons sales during 2017-08,
according to the Ministry of the Oil. The Egyptian internal oil question is in increase. According to
the Ministry of the Oil, the question of oil and gas will increase probably of further ten percent in next
three years, as it is acceptable.
The ability of refining of the country has increased to 33 million tons to the year (MTPA) with the 1
in December 2019 compared to 30 million tons to the year with the 1 in October 2018.
The question of natural gas of the Egypt should double almost to 7,2 milliard meters standard cubes
in the day within 2023, according to a report published by the Ministry of the Oil. According to the
report, the present question is 350 million meters standard cubes in the day and the Egypt is trying to
substitute many uses of the petroliferous products with natural gas to reduce the uses and to stop the
export it.
The industry of the oil and of the natural gas is big and it asks for huge investments. His wages
contribute in significant way to the economy and to the Egyptian style of life. The costs of the sector
remain huge, independently the fact that the profits are low or high, as it has happened for the most
part the 90s. Investments in new abilities and improved technologies have allowed to the Egyptian
refineries to produce a list of great quantities of fuel for the consumers. Still, the percentage counter
on the investment in the Egyptian refining has slowed down for many years compared to the middle

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yields of the industrialist Standard and next Poor'. The refiners must invest constantly and do it when
the profits are inferior.

5.3 Practice Techniques in Upstream petroleum Industry:

The estimate of the international Agency for the energy shows that I enter 2030 the investments
into exploration and production of oil, refining, infrastructures and transport will ask for more
than 9,6 billions of dollars, a media of further 380 milliard dollars in the year. The investment
levels more expected are guided more costs from materials, staff and equipment and the
inquiries on the expenses in capital account from the petroliferous industry foresee the expense
for investments in 2018 at the highest level of the last years, with a continuous growth foreseen
in 2019. The maintenance of elevated global prices of the oil will stimulate levels record of
investments Before the petroliferous industry, and if the prices remain the same ones, the
continuous investments to stimulate the recovery, the new exploration and not agreed oil (for
example, bituminous sands, heavy oil and / or schist oil) will speed up the technologies of the
alternative fuels.

Recent prices record of the oil, the petroliferous companies have maintained levels of flow of
case therefore to create investments in production, new abilities, technology and structures, a
historical view on the direction of the investments of the sector and key considerations that
involve the importance of the risky investments a long time term is important to include the
expense for investments running and additional of the sector.

To satisfy the growing world energy needs, the petroliferous industry must face great challenges
against his necessary future investments. With the new estimate of the Organization for
Economic Co-operation and Development (OSCE) and the international Administration of the
energy (IEA), it is foreseen that the total energy investments will go about around 66 billions of
dollars (in 2020) the period 2020-2030 and that the investments in the oil will have to be 16
billions of dollars. Since the present and future supply installation becomes obsolete or the
resources have been exhausted, new operations of exploration and expansion they will have to
substitute the existing oil reserves, as well as adding new substantial oil reserves.

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The petroliferous societies must face significant restrictions on the investment timeliness at their
disposal, in spite of an increase of the question. Many new oil reserves will be discovered out of
the United States and often there are applied to the United States investments national
restrictions or burdensome requirements of license. There are disposable many petroliferous
explorations, more and bigger included investments, with a general planning for Nemours and
the construction of first Nemours that the production could be found. The petroliferous industry
must face significant geopolitical, environmental and normative risks, addition to operational
risks associated with oil exploration and the general economic risk, production and development.

The decisions of investment are of nature a long time term and you fix from ties of ability to short
term. The absolute volume of "new investments" specific like the expenses in capital account in
property and equipment (PP&E) and the installation, more the expenses of development (R&S)
and the expenses of exploration and research. The enterprises will need financing, solid budgets
and access for new oil.
Reserves, smaller uncertainty, taxes, interesting prices and conditions of cost to satisfy these great
demands with future energy investments. "Global Oil and Gas Capital Expenditure Projections -
2020 for National Oil Companies (NOCs) to Drive Investment" it supplies deepened analyses and
widening on the projections of expense on capital account of the petroliferous sector for 2020. The
report supplies a detailed analysis with the running expense with future expenses in capital
account and the position of the national petroliferous companies and independent supplemented
petroliferous companies. It supplies detailed information and analysis of the expenses in capital
account for petroliferous resources, exploration and production.

In the branch of the exploration, many factors influence the decisions of development and drilling
in the way in any a company defines the capital through the own outline. The company should
strive of maximising the profits, but the financial forces and the shareholders (bottoms managers,
banks, and so on) Might require to the company to pursue the growth (the entity of the reserves) or
his operations on a large scale. At company level, the decision of assigning resources in any year
depends on the situation of the flows of case, on the preferences of acceptance of risk, on the
competition in the global market of the capitals, on the company profitability, on the perspectives

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of availability to be pierced, the engagements of the shareholders, the strategic decisions and the
company inhalations for the future. In the moment in which the company determines the own
budget, it should be able to do a quite reliable forecast from the percentage of production of next
year at an esteemed cost. Usually, there assumes the horizon of planning of the prices of the oil
and the projects are valued on a well-known and coherent base, in which the risk and the benefits
of the projects are discussed by an expectations variedness on the prices, geologic, government,
fiscal, technical factors, productiveness and legal (CEPA, 2000).

The principal fountain at which the companies obtain financing for new projects is the case flow.
The price of the crude and of the derived products is a fundamental motive of the flow of case,
so as it it is also the profit. The flow of disposable case is also influenced by many people other
factors, between whose reinvestment of the dividends, actions, reduction of the debt and
repurchase. Trend of the flows of case in order that the movements follow from price and
production.

A politics of the dividends shared with each society, based on factors which the dimensions of the
company, the cost of the capital and the expectations of the company (Brealey and Myers, 1991).
The principal elements are orientated towards a conservative constitution of horizons of planning
a long time term. The shareholders of the biggest societies get on a part greater of their profits to
come from the dividends compared to the least enterprises, and then they usually broadcast at an
inferior level of growth of the production.

The fountain of the bottoms for the petroliferous industry there are the bank institutes, but
generally they are expensive compared to other fountains of financing. Many companies place
trust to bank services for loans to short term, like a line of credit, a contract of credit of start, a
loan on arrangement or a disposition to pay the operative income in cash.

If the society in which it makes the capital does not obtain an adequate profit, the society has an
access limited to new capital that induces the investors and the institutes of credit to look for
more than one profitable timeliness. The capital availability should not limit the investments to
the petroliferous societies integrated into the short term.

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The investments in the petroliferous sectors can be bounded at the lack of profitable timeliness of
business. The decisions of investment above are based on the hypotheses of the enterprise as to
the planning perspectives, at the future prices of the oil, to the least percentages, and so on (Chua
and Woodward, 1992; Turner, 1983).

The governments choose their production ability on the grounds of a series of factors. The
governments can allow investments to protect the resources of hydrocarbons and the income for
the future generations (Reynolds, 2005). If the benefits of the government and the taxes on the
production change the terms and the conditions of the financial return, the low profitability of the
initial projects can hinder the investments.

3. Results and Discussions

In succession we discuss the present decision-making techniques used in the petroleum industry
above that they will help in the decision-making investment process and how to apply them.

3.1.1 Expected Monetary Value and Decision Tree Analysis

The concept EMV is a method to arrange the estimate of profitability of the risk and of the
uncertainty to produce a decision-making standard corrected for the risk. The rule for the decision
on the expected value declares that when it is chosen between different alternatives of decision that
are excluded in turn to equality of all the other factors, the decisive must accept the decision-
making alternative that increases the value EMV. The decision is replaced by a set of repeating the
experiment EMV important decisions if you accept the decision as a way to determine monetary
value of each can be obtained. In the field, how can recover well drilling companies considering
additional assessment of economic analysis calculates the estimate of reserves must be used as
input (Lohrenz and Dickens, 1993).

The recovery time

Recovery is known as the period that runs between the initial investment in the project by the
company and the generation of accumulated net revenue equal to the initial investment. In the oil
industry, this period is usually from ten to fifteen years. Oil companies and gas they want to see
a recovery period of 5 years or less, but it will exceed 5 years if the reserve is a long resource for
more than 15 years. The direction might not be felt to own comfort in facing the methods DCF

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when he looks at himself to a risky investment; They want alone knowledge how much time will
love us to re-have the invested money.

Cash flows Discounted

The greatest part of the principal costs or flows of case in exit are supported in the preceding
years, exploration and development, while the case flows in entrance or the proceeds are
distributed long the active useful life of the field. This returns the particularly difficult economic
modeling because in each point of decision of investment he must generate estimate of the
values to the moment of the contract with variables, some of which are well-known to be
winged, like the prices of the oil and the inflation. This means also that is fundamental to adopt
techniques of discounted cash flow (DCF) in the evaluation of an investment (Simpson et to.,
1999). The tool the most popular DCF is the method of the clean present value (NPV).

To determine the percentage of discount appropriated for the potential project of investment of a
society is, in definitive, a question about judgment and about preference. The percentage of
nominal discount for the case base of the analysts of the petroleum industry consists of four
different components:
The percentage of real yield devoid of disposable risk through a yield a long time term
connected with the index. This includes the interest rate to the moment of the purchase and any
percentage of inflation that is verified during the repayment period.
Hypothesizing an inflation percentage a long time term.
I award a prize for the stock risk. This is the yield waited by the investors in actions as well as
the yield of the activities devoid of risk. The prize is asked because the yields of the own capital
are like the initial investments: they can be respected only and are not guaranteed.
I award a prize for the exploration risk. The petroliferous companies are generally sights as the
risky majority of the stock market (Wood Mackenzie, 1998).

The greatest part of the companies that now use the measure of the profitability of the clean
profit seem to use percentages of discount included between 9 % and 15 % for the investments
in the petroliferous prospecting. Some companies adopt a percentage of discounts more raised
like rudimentary mechanism for the estimate of the risk and of the uncertainty (Newendorp,

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1996, pp35-36).

Analysis of Sensitivity
The greatest part of the companies that use VAN as key indicator of profit "without risks" in
taking decisions of evaluation of the investments does it together with the analysis of sensitiveness
(Newendorp, 1996). As soon as VAN has been created for a project of specific investment, the
analysis of the sensitiveness is used like mechanism for verifying if the decision of investment will
change on the grounds of the hypotheses on which the analysis is based. The analysis of the
sensitiveness can involve the simultaneous modification of some or all the values of the
parameters (Newendorp, 1996).

Preference Theory
Still, the realistic application of the theory of the preferences remains controversial and some
academicians and many entrepreneurs put in doubt the value it in the context of the decision-
making process in point of investments. In many articles and books about the decision-making
process in point of investments, the theory of the preferences comes sometimes definite theory of
the usefulness or curves of usefulness.

5. Conclusion
There are different dimensions of the decisions of investment, which are an investment
and impact on profitability, evaluation of alternative enterprises, subsidiaries and
independent companies, discount concept, discounted business flow, company financing,
enterprise discount rate, time of payment, financial implications, etc. once a fair
investment is determined, the next step can be taken successfully. Large-scale capital
projects such as oil and gas exploration present significant challenges. Projects become
more complex and expensive. Make careful planning, achievement and measurement
more important than ever.
The oil and gas industry is very winged. Companies have a high degree of corporate risk.
Shareholders support additional risk associated with the use of the financial lever. The maximum
use of a financial lever is associated with significant risk to shareholders, as it affects the interest

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rate and thus the cost of capital. According to Grayson, 1960, risks arise from enterprise (creation,
operation, production and inventory), as well as from changes in global economic conditions
(market and macroeconomic), political conditions (regulation and confiscation), legal
requirements (contract, jurisdiction), etc. Power. (Natural disasters, civil unrest, terrorism). The
higher the risks associated with investment, the higher the cost of capital and the higher the rate of
return required by investors and lending institutions.

The vital factors to take decisions of investment for the petroliferous industry and of the gas
specifically they can be summarized in the following way:
1. Forecasts of the prices for the company with the sector - The principal challenge that the sector
must face in the utilization of the forecasts on the prices of the oil and of the natural gas (AEO
and other fountains) are the great differences that have been verified between the estimated prices
and those real.
2. The sum of the annual flows of case that here is waited of receiving on the investment.
3. The ability of loan that can be supported at annual case flows.
4. Timeliness wallet - In the last years has been observed that certain number of society has used
the own case flows to repurchase the actions of the society since there has been verified a lack of
timeliness of investment able to supply a return on the investment most raised compared to their
present wallet of preceding investments.
5. Acceptable risks associated with the decisions of investment.
6. Other factors can include factors of offer, question of market, availability and access for the
resources, and so on.
The downstream pressures on the fall on the prices of the oil and of the gas usually lead to a
smaller activity of drilling and investment of oil and gas in the whole petroliferous industry and of
the gas, while the pressures to the rise can lead to an increase of the activity of exploration and
investments of oil and gas. In spite of the increase of the global prices, the global question of oil
and gas in the last three years has kept on increasing, guided at the continuous growth of the
economies of China, Asia and Middle East. At the same time, the percentage of decline of the
production with fixed reserves has increased in many areas and the estimate of the ability of
production of oil in excess has gone down at levels that were not seen the 70s.

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Bassam Fattouh on "The challenge of the investments for the countries oil producers" in Middle
East Economic Survey, vol. The edition No 38, No 38, on September 20 2004 has suggested the
next involvement of the present debate on the investment of the raw oil above:

In the first place, the investment in the oil production asks for long time periods and does not reply
immediately to the present developments of the market how he would want to do the model
without friction. The conditions of the worldwide market combined with local factors determine
the length of leads in every country. The only action which the oil-producing countries can
undertake is to send signals to the operators of the market pointing to them out that they have the
intention of investing more in oil production in future. It remains to see these signals how long
would be possible change waiting on the future markets.

In the second place, because of the uncertainty that invests the petroliferous market, the option of
waiting and without investing has become precious. This means that the countries oil producers
and the international petroliferous companies can decide to delay their investments. If the question
keeps on growing as many observatories fore see nowadays, this will be translated in a worse
scenery be for the producers of oil (above all OPEC) for which for the consumers. For the OPEC,
this means a strength loss to influence the prices to the rise; for the consumers, this means higher
prices of the oil and greater instability of the prices.

In the third place, the problem of the investment has turned out to be aggravated by the
ineffectiveness of the exhibition between the government and the national petroleum companies
and the exhibition that has been intensified between the national petroleum companies and the
international ones. The highest quotas due to the high oil prices might annul again the limited
budget of capital of last years, but this inaction will be only temporary. The main problem is the
nature of the relations and the environment that they create that they are not propitious for the
investment. The nature of these relations is changing very slowly, what means big debts in the
investment.

In fourth place, the planning of the ability of investment asks for a wide coordination degree
between the same countries oil producers. The present situation in which the OPEC should expand

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the own ability in excess while the countries produce not OPEC in timely way a discouragement
factor for the OPEC to be invested at least to middle term. In front of the estimated increase of the
question and the lack of coordination, the ability in excess at the end will disappear.

These effects are very disastrous. Still, if the present characteristics of the petroliferous market
persist - and probably such will remain - then the world will have to get used to emerging of
petroliferous conditions of market very difficult from time to time with great fluctuations of the
prices of the crude.

Finally, all result coming from research and situation in Egypt oil and gas market refer to the
Egyptian companies takes two ways its but more investment to produce both oil and natural gas
to achieve all local market needs beside supply all new refinery projects and trying to export in
next years

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