2020Egypt plans to sign oil and gas exploration and production contracts in 2021 - ZAWYA

17 JUNE, 2020
Marwa Abo Almajd

Egypt has signed 12 oil and gas exploration and production agreements involving local and international companies, an official of the Ministry of Petroleum and Mineral Resources said.

Spokesperson Hamdy Abd Alaziz told Zawya Projects last week that the agreements have received cabinet approval and the contracts are expected to be signed in 2021 after parliamentary approvals.

He said agreements were signed with companies from the US, UK, France, Kuwait and the UAE to start exploration and production activities in the Western Desert, the Mediterranean and the Red Sea.

Abd Alaziz said the local counterparties to the agreements included the Egyptian Natural Gas Holding Company (EGAS), which has projects in Narges, North Al Dabaa; North Sidi Barani; North Al-Salloum; North Al-Amiriya; North of Ras Kanais; North Marina and North of Cleopatra in the Mediterranean; Ganoub El Wadi Petroleum Holding Company (Ganope), which has projects in Blocks 1, 3, and 4 on the Red Sea, and Egyptian General Petroleum Corporation (EGPC), which has a project in East Abu Sennan in the Western Desert.

In December 2019, Reuters reported that Egypt had awarded oil and gas exploration concessions in its first ever Red Sea licensing round.

Numbers about natural gas activities in Egypt - EGYPT TODAY

Tue, Sep. 24, 2019

CAIRO – 24 September 2019: Egypt has put a number of gas fields on the map of production during the last period, which was reflected on the rates of gas production in September to hit 7.2 billion cubic feet per day.

The following are the most important figures that drew the map of natural gas activity in the last period:

1. Launching an international tender for oil and gas exploration in 10 sectors in the Red sea.
2. Signing Noor Marine Agreement, with investments of research and exploration amounting to about $85 million.
3. The value of investments in the field of research, development and operation of natural gas activity reached about $3.7 billion during 2018/2019.
4. Egypt's natural gas production has risen to unprecedented rates.

Egypt’s Offshore Red Sea Oil & Gas exploration Bid Round closes today - ENERGY EGYPT

SEPTEMBER 15, 2019 AT 1:57 PM

The Red Sea oil and gas exploration tender ends today, with bids from major oil producers expected to be announced later. Shell, ExxonMobil, Statoil, Dragon Oil, Russian Rosneft and Total have all reportedly bidding for 10 oil and gas exploration blocks off the Red Sea coast under a new production sharing contract, which were tendered back in March by the South Valley Egyptian Petroleum Holding Company (Ganope), sources told Egypt Today on Thursday.

Ministry of Petroleum and Mineral Resources, represented by South Valley Egyptian Petroleum Holding Company (Ganope), will close receiving tenders for the 2019 international bidding in the Red Sea on Sunday, Sept. 15 before noon.

Sources at the petroleum sector told Egypt Today that companies applying to the tender included Shell, ExxonMobil, Statoil, Dragon Oil, Russian Rosneft and Total France.

Red Sea gas scramblers have until mid-September to submit bids to Egypt’s GANOPE - ENTERPRISE

Monday, 22 July 2019

Scramblers have until mid-September to submit bids for Red Sea exploration: The South Valley Egyptian Petroleum Holding Company (Ganope) has extended to mid-September the deadline for submitting bids in its tender for 10 oil and gas exploration blocks off the Red Sea, an unnamed Oil Ministry official said. The deadline, which was previously set for early August, was extended to give more companies a chance to join in.

Background: Ganope launched the tender last March for 10 oil and gas exploration blocks under new production sharing contracts. The new terms give producers a larger share of the output and allow them to sell their share to non-government entities of their choosing, provided they obtain approvals from each of Ganope, EGAS, and the EGPC.

Egypt puts eased rules for energy companies to use their production share from new Red Sea concessions - ENTERPRISE

Wednesday, 27 March 2019

Companies awarded concessions in Red Sea bid round can sell at home or abroad: The South Valley Egyptian Petroleum Holding Company (Ganope) will allow companies awarded concessions in the ongoing Red Sea bid round to decide what to do with their share of output, Al Shorouk reports. Companies looking to sell natural gas to third parties inside Egypt will be required to get approvals from Ganope, EGAS, and EGPC, as well as further approvals from the oil minister on the quantities, price, and sales contract. Any exports of natural gas or liquefied petroleum gas (LPG) from these concessions will also require ministerial sign-off on the quantities and price.

Background: Egypt launched a tender earlier this month for 10 oil and gas exploration blocks off the Red Sea coast under a new production sharing contract, according to a Ganope statement (pdf). The Oil Ministry has been reportedly planning to roll out new production sharing contracts with friendlier terms for international oil companies this quarter.

Egypt launches licensing round for Red Sea oil and gas exploration - THE NATIONAL

March 10, 2019

Jennifer Gnana

Saudi Arabia said last week that it had found "large volumes" of gas offshore
Egypt will look to incentivise exploration in the Red Sea area, which is expected to include unconventional resources.

Egypt has tendered 10 blocks offshore the Red Sea as it looks to duplicate its successes in the Eastern Mediterranean, which led to a gas bonanza ending the country’s imports for the fuel.

The South Valley Egyptian Petroleum Holding Company (Ganope) invited companies on Sunday to review and purchase technical data, with August 1 set as the closing date for bids.

The announcement follows Egypt’s successful closing of one it largest ever bid rounds, which saw the award of 12 licences and marked the entry of US major Exxon in the search for the country’s hydrocarbons. Egypt, the Arab world’s most populous state struck gold in recent years thanks to the discovery of the massive Zohr field by Italian energy major Eni in 2016 in the Eastern Mediterranean. The find sparked search for more hydrocarbon resources along the Nile Delta and western desert as the North African state looked to leverage these discoveries to become a net exporter of gas, particularly to markets in Europe.

Egypt to offer three oil & gas exploration bid rounds this year / Inaugural meeting of the East Med seven took place yesterday - ENTERPRISE

Thursday, 7 March 2019

Egypt is planning to offer three oil & gas exploration bid rounds this year, Energy Minister Tarek El Molla told local press. 

EGAS will offer a bid round in the Mediterranean and EGPC will offer two bid rounds in the Western Desert, the Red Sea, and the Eastern Desert.

Inaugural meeting of the East Med seven took place yesterday: Representatives from the seven East Mediterranean countries held the inaugural meeting to form a regional gas market in Cairo on Wednesday, according to an Oil Ministry statement. 

The meeting, which included representatives from Egypt, Israel, Cyprus, Greece, Italy, Jordan, and Palestine, looked at the initial steps needed to bring about the market. 

Egyptian petroleum minister fleshes out country’s progress as regional hub - THE ARAB WEEKLY

Sunday 24/02/2019

Mohamed Hammad

Egyptian Minister of Petroleum Tarek el-Molla said Cairo would soon announce its first international bid for oil and gas exploration in the country’s Red Sea territory, as a step towards Egypt increasing its position among natural gas suppliers in the region.

Molla said the ministry carried out two seismic surveys in the Red Sea and southern Egypt that indicated “positive signs that encouraged us to submit tenders to international companies for the extraction of oil and gas in that virgin region.”

“This procedure would not have been possible without the delimitation of the maritime border with Saudi Arabia in April 2016. [The agreement] enabled Egypt to search and explore in this region for the first time,” Molla said.

The surveys were carried out by US companies TGS and Schlumberger at a cost of about $750 million.

Tenders for oil and gas exploration in the Red Sea were to have been announced last December but Molla said Egyptian officials decided to wait to better market the promising potential in the region.

Egypt signs 7 agreements to explore petrol, gas with investments of $162M - EGYPT TODAY

Wed, Feb. 20, 2019

CAIRO – 20 February 2019: Seven Agreements were signed to explore petrol and gas with minimum investments of $162 million during 2017/2018, an official source at the Petroleum Authority said.

The source elaborated that procedures of 10 new agreements were completed during July and August 2018, noting that 19 contracts were signed to develop the discovered fields until August 2018 in order to support the targeted plans to increase the production of petrol and gas.

He added that 98 exploratory wells were drilled to support and increase the reserves of the petroleum wealth, of which 58 wells were put on production.

According to the source, the petroleum sector succeeded in securing the market needs of petroleum products, as the average production of crude oil hit 626,000 barrels of crude oil and condensates during a year.

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization - ENTERPRISE

Tuesday, 15 January 2019

East Med gas players vow to establish regional market, choose Cairo as HQ for new organization: East Mediterranean gas producers will establish a regional gas market following an agreement in Cairo yesterday at what’s being billed as the first meeting of the East Med Gas Forum, according to an Oil Ministry statement. The forum agreed to “create a regional gas market that serves the interests of its members by ensuring supply and demand, optimizing resource development, rationalizing the cost of infrastructure, offering competitive prices and improving trade relations,” Reuters reports.

Who’s on board? The meeting was attended by representatives from seven countries including Israel, Cyprus, Greece, Italy, Jordan, Palestine and Egypt.

It’s not clear precisely what “regional gas market” means: Prior to the meeting, an anonymous source at the ministry said that countries would discuss ways to increase Egypt’s role as the region’s primary LNG exporter. However, the ministry’s statement does not elaborate on how yesterday’s agreement fits with the country’s gas hub ambitions. We’re also remain none the wiser on the shape the regional market could take or what steps the organization will take to get there.

Reaping the rewards of Egypt's reforms - PETROLEUM ECONOMIST

7 January 2019
David Butter

The Egyptian government is looking to 2019 as the year in which it will start to realise clear dividends from previously-enacted economic reforms. These have included changes to the petroleum regime that are already yielding benefits in the form of a rapid ramp-up in natural gas production. On the political front, one of the key issues will be whether President Abdel-Fattah el-Sisi prepares the ground to extend his mandate beyond 2022, when his second, and supposedly final, term is scheduled to end.

The $12bn IMF programme that commenced in November 2016 is now in its final year. The main elements have been putting in place a flexible exchange rate system, bringing down the fiscal deficit through increased taxation and cuts in energy subsidies, and seeking to improve the environment for private investment. The programme has also included social protection measures, in particular increases to food subsidies and the development of schemes targeting assistance at vulnerable groups.

The effects of the reforms, both positive and negative, have been evident in Egypt's main economic indicators. Real GDP growth has accelerated from 3–4pc to over 5pc, and the government is aiming for growth of 5.8pc in the fiscal year that ends in June 2019 and for 6.5pc the following year. These targets are achievable, partly thanks to the surge in gas output and the recovery of tourism, but the relatively weak rate of growth in private consumption is likely to persist, reflecting the pernicious impact of high inflation on living standards.

Egypt to launch E&P tenders for Red Sea blocks in 1Q2019 - ENTERPRISE

Sunday, 6 January 2019

The Ganoub El Wadi Petroleum Company is expected to launch exploration and production tenders for 10 oil and gas offshore blocks in the Red Sea during 1Q2019, after initially planning to issue the tenders last year, according to a local news outlet. 

The postponement is due to delays in the issuance of required permits.

Foreign oil and gas companies in Egypt to increase investments to USD 11 bn - ENTERPRISE

Tuesday, 18 December 2018

Investment in Egypt by global oil majors is on track to rise c. 10% this fiscal year, unnamed industry sources told the local press. Total investment by global exploration and production companies should close the state’s 2018-19 fiscal year at c. USD 11 bn against USD 10 bn a year ago in part thanks to the Oil Ministry clearing some USD 5.1 bn in arrears it owed the companies, the story says. Major projects in the pipeline include second-phase drilling in the supergiant Zohr field, with a USD 300 mn tenth well set to be drilled next month, continued work in the North Alexandria offshore concession and the start of production from the first three wells of West Nile Delta. The Oil Ministry has recently reached an agreement with the companies to expedite their work on the latter projects. The projects are expected to produce a combined 800 mcf/d of natgas during the current fiscal year.

Oil Ministry expects USD 10 bn in new oil and gas investment during current fiscal year - ENTERPRISE

Sunday, 11 November 2018

INVESTMENT WATCH- Oil Ministry expects USD 10 bn in new oil and gas investment during current fiscal year. 

Oil Minister Tarek El Molla said on Saturday that his ministry expects some USD 10 bn in new investment in the sector in 2018-19. The figure includes both funding for both exploration and production activities. 

The minister said high appetite among international oil companies (IOCs) for Egyptian opportunities underscores their confidence in Egypt’s improved investment climate. 

The minister expects IOCs to bid in an upcoming sale of exploration blocks in the Red Sea region, saying it would be the first time blocks would be on offer in that region.

Egypt, Cyprus to sign deal to connect Aphrodite gas field with Egypt - REUTERS

APRIL 29, 2018 / 5:43 PM
Reporting by Nadine Awadalla and Patrick Werr; writing by Arwa Gaballa; editing by Jason Neely

CAIRO (Reuters) - Egypt aims to sign an agreement with Cyprus to connect the island’s Aphrodite gas field with Egypt, Egypt’s oil minister said on Sunday.

Tarek El Molla, speaking at an American Chamber of Commerce in Egypt event in Cairo, also said the country was preparing a bid round for unexplored offshore areas west of the Nile Delta to the Libyan border.

“We intend to have a bid round in this area shortly,” Molla said.

Egypt may also invite companies to bid for oil and gas exploration in the Red Sea before year-end, he said.

New seismic surveys in Shorouk concession to uncover further reserves - ENTERPRISE

January 28, 2018

New seismic surveys are underway in the Shorouk concession in the Mediterranean Sea, Oil Minister Tarek El Molla said last week, Al Shorouk reports. The surveys are meant to uncover further reserves in the Zohr gas field, which is in the concession.

GANOPE has also completed seismic mapping for 4,200 km in the Red Sea in preparations to issue blocks there for a bid round, Chairman Mahmoud El Shimy said, according to Al Masry Al Youm. The maritime border demarcation agreement with Saudi Arabia allows for tendering blocks in the Red Sea for oil and gas E&P for the first time.