Star Oil & Gas (SOG) holdings, a market leader for project management, consultancy within the Oil, Gas, Power and related industries, will be injecting $250 million in new investments in Egypt.

Officials from a Chinese business delegation from SOG along with partners from the International Drilling Material Manufacturing (IDM) company on Sunday met with Egypt’s Minister of Petroleum and Mineral Resources Sherif Ismail, according to a report in The Cairo Post.

The money to bankroll the new projects will be completely funded by the Chinese government and Chinese banks, it added.

A statement by the ministry said the Chinese delegation discussed a feasibility study of a new steel rolling factory to produce seamless pipes to supply the entire African market.

It said this is being considered as a development step in the whole IDM system.

SOG’s representative in Egypt, Mohamed Al-Gohary stated that this move is going to be a first in the Middle East in the field of drilling and oil exploration.

He assured Cairo that the Chinese are maintain trust in Egypt’s long-term economic vision, crucially one of the main reasons encouraging them to prepare the study and discuss it with the government.

Li Yang, SOG holdings head said that the Chinese government considers Egypt as a key investment hub in Africa.