Gov’t selects firm to sign fuel hedging contract
Gov’t selects firm to sign fuel hedging contract: The ministries of finance and oil have settled on the firm which will sign fuel hedging contracts with the government, a government source told Enterprise. The source refused to reveal the winner of a tender issued by the Oil Ministry to select an institution to provide Egypt with fuel hedging solutions to prevent higher oil prices from further straining the state budget, which assumes an average price of USD 67/bbl. The winning firm had offered to help Egypt hedge against oil futures rising above USD 73/bbl, the source added, saying that oil prices are expected to stand at USD 70/bbl by the end of 2018. The contracts are currently being reviewed by a legal adviser appointed by the government and will be signed following the next OPEC meeting, the source added. We had heard that seven offers were already on the table and under review from international banks bidding on the tender.