Russia’s Largest Gas Producer Exits Egypt Due to Instability

Russia’s largest independent natural gas producer, Novatek, decided to exit the Egyptian market and end its production activities due to the country’s political instability and the deteriorating security conditions, says Anatoliy Chomachka, a diplomatic representative at the Russian embassy in Cairo.

“This is just another missed investment opportunity for Egypt; the country has witnessed the withdrawal of major investments since the January 2011 uprising,” the Cairo-based diplomat told Aswat Masriya, a Reuters affiliate.

NOVATEK OAO (MCX:NVTK) (LON:NVTK) began exploratory drilling at Al-Arish offshore prospect in Egypt at the end of 2009 and announced it would pump almost $40 million in drilling activities up until 2012.

The Russian gas producer evacuated some its staff during the events of the Egyptian revolution and its drilling activity was halted at several times in Al-Arish region.