I used to own stock in a company that had oil interests in Egypt. I think that the name was Phoenix Resources.
erf.org.eg
Also...
mbendi.co.za
Egypt: Oil And Gas Industry - Overview
Overview
The petroleum industry plays a key role in the Egyptian economy accounting for about 40% of export earnings and the upstream sector for about 10% of the GDP. It is one of four main sources of foreign exchange.
Egypt is currently an oil exporter. With increasing domestic demand and maturing oil fields in the Gulf of Suez, there are fears that by 2005 to 2010 it will become a net importer of oil. The Egyptian government is attempting to counter this by encouraging increased exploration, enhanced oil recovery and an increase in the domestic consumption of gas. Following encouraging discoveries in the 1990's, the future of Egypt's petroleum industry is thought to be in natural gas rather than crude oil.
The downstream oil industry is also important with a domestic energy consumption rate increasing by 2% to 10% per annum. Egypt has one of the strongest refining industries in Africa based in the Port Suez refinery complex.
Egypt constitutes one of the largest markets for lubricants in Africa, accounting for as much as a sixth of the continents demand for lubricants. It is also one of the main producers of lubricants with three refineries producing base oils. EGPC is planning to increases production of lube oils.
Egypt's strong petroleum industry supports the key chemicals sectors, fertilizers, petrochemicals, polymers and other chemicals. Plans are also underway to expand the petrochemical industry in Egypt.
The Egyptian General Petroleum Corporation (EGPC) controls the oil industry in Egypt. It is active in the upstream, downstream and petrochemical sectors. The EGPC has full responsibility for all sectors of the Egyptian petroleum industry and holds the sole right to import and export crude oil and other petroleum products.
Although Egypt is seeking to increase revenues by a programme of privatisation, trade liberalisation and deregulation, there seem to be no current plans to privatise EGPC. In May 2000, president Obeid announced that Egypt is to privatise parts of the oil industry by selling a 20% stake in state-owned oil refineries and 30% stake in state owned oil-distribution companies by the end of the year.
Egypt also has a strategic importance as the operator of the Suez Canal and the Sumed (Suez-Mediterranean) Pipeline through the SCA (Suez Canal Authority) and APP (Arab Petroleum Pipeline Company (a joint venture between Egypt, Saudi Arabia, Kuwait, the UAE and Qatar)) respectively
Upstream
The upstream oil and gas industry is a significant contributor to Egypt’s economy. It generates 10% of GDP and represents one of the country’s four main sources of foreign exchange, with oil accounting for about 40% of total export revenues. Egypt’s 1999 proven oil reserves estimates are given at about 3.5 billion barrels and Egypt produced an average of 866,000 bbl/d during 1998.
The main areas of exploration for oil and gas are the Gulf of Suez, the Nile Delta, the Western Desert, the Sinai Peninsula and the Eastern Desert. The Gulf of Suez, although mature with decreasing production levels, remains the major oil source of oil. However, the decrease in production levels together with an acceleration in industrial growth in Egypt an associated increase in domestic oil consumption has given rise to fears that Egypt will become a net oil importer by as early as 2005. Exploration is being focussed on alternative areas to increase Egypt’s oil reserves and maintain production levels above 800,000 bopd.
Attractive exploration terms offered to foreign companies in gas exploration meant that gas exploration and discoveries increased dramatically in the 1990’s. In 1999 Egypt produced an average of 2.3 Bcf/d and it is believed that production will double by 2003. Egypt’s gas reserves are estimated at 42 Tcf. The future of Egypt’s energy sector is considered to be in natural gas rather than crude oil and in January 2000, the Egyptian cabinet granted approval for the export of natural gas.
After 1991 and the institution of the IMF’s stabilisation programmes, the Egyptian government began a reform of its fiscal policy and announced attractive incentives for foreign investment and exploration, and a commitment to a policy of privatisation. Improved incentives for exploration included the provision of larger exploration blocks, increased cost recovery allowances, and increased agreement periods. After a fairly slow start, progress on privatisation, trade liberalisation, and deregulation accelerated in the late 1990’s. Although the programme of privatisation is looking at key areas of state owned organisations, including telecommunications and utilities, the Egyptian General Petroleum Corporation (EGPC) is not being considered.
Government’s role in the industry is through the offices of the Egyptian General Petroleum Corporation (EGPC) which was created in 1962. For the next ten years, EGPC carried out exploration and production in joint ventures with multinational companies. After 1973, production sharing agreements superseded joint ventures.
Downstream
The downstream oil industry is also important with a domestic energy consumption rate of approximately 10% per annum. Egypt has one of the strongest refining industries in Africa based in the Prot Suez Refinery complex. Egypt’s main refinery, Mostorod, is situated near Cairo. The government hopes to upgrade and enlarge the facilities which exist at present by increasing the production of petrochemicals, higher octane gasoline and lighter products. The Ministry of Petroleum is also looking to build five new petrochemical plants and refineries. Egypt constitutes one of the largest markets for lubricants in Africa, accounting for as much as a sixth of the continent’s demand. |
