Energy
From The Report: Egypt 2013
View in Online Reader

As the largest non-OPEC oil producer in Africa as well as the continent’s second-largest natural gas producer, Egypt’s hydrocarbons resources and production play a central role in the nation’s economy. While the sector was nationalised in the 1960s, more recent reorganisations have created separate authorities for oil, gas and petrochemicals, which has allowed the private sector to play a bigger role. At the end of the 2000s, around 80% of oil and gas services were operated by the private sector and 90% of exploration activity was conducted by multinationals. Exploration activities have continued even amidst the ongoing political transition, with several recent discoveries adding to both oil and natural gas production. However, a number of long-standing challenges remain. These include an oil production level that has stayed flat in recent years and a rapidly rising demand for energy in the domestic market that has placed increasing pressure on Egypt’s exported gas supply.

This chapter contains interviews with Sherif Ismail, Minister of Petroleum; G Steven Farris, CEO, Apache Corporation; and Ahmed Mostafa Emam Shaaban, Minister of Electricity and Energy.

Articles from this Chapter

Overview

Slow and steady: Growth and interest is being maintained, even in turbulent times
OBG
plus

As the largest non-OPEC oil producer in Africa as well as the continent’s second-largest natural gas producer, Egypt’s hydrocarbons resources and production play a central role in the nation’s economy. Exploration and production activity has not been significantly affected by the country’s ongoing political transition, with a handful of new investments having taken place since 2011. “Even with the uncertainty, Egypt is a major conventional player in energy and cannot be ignored,”…

Interview

Finding solutions: OBG talks to Sherif Ismail, Minister of Petroleum
OBG
plus

Interview:Sherif Ismail What kind of interest are you seeing from international oil companies (IOCs) in new acreage? SHERIF ISMAIL: The results of the most recent bidding rounds issued by the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and Ganoub El Wadi Petroleum Holding Company (Ganope) demonstrate the interest of IOCs in Egypt, and can be interpreted as a sign of trust in Egypt’s significant potential in terms of hydrocarbons reserves.…

Interview

OBG talks to G Steven Farris, CEO, Apache Corporation
OBG
plus

Interview:Steven Farris In your view, what is the current state of investor confidence in Egypt’s oil and gas sector? STEVEN FARRIS: Clearly, the events over the last two years have taken a toll on the country’s investment attractiveness. However, according to the Multilateral Investment Guarantee Agency, a member of the World Bank Group, the oil and gas sector represents 25% of Egypt’s fiscal revenues, and accounts for nearly 70% of foreign direct investment. We have a long history…

Analysis

Rising to the challenge: A number of renewable sources are helping to supply basic utilities
OBG
plus

The provision of electricity, water and sanitation services presents particular challenges in a country with a population expanding as rapidly as that of Egypt. The unrest experienced by the country since 2011 has further complicated this task. While successive governments have taken steps to increase the capacity of the nation’s utilities infrastructure, the private sector investment necessary for its continued development is proving elusive in the current environment of uncertainty. ELECTRICITY…

Interview

OBG talks to Ahmed Mostafa Emam Shaaban, Minister of Electricity and Energy
OBG
plus

Interview:Ahmed Mostafa Emam Shaaban What are the priorities for liberalisation of the transmission and distribution network? AHMED MOSTAFA EMAM SHAABAN: The current priority is the liberalisation of the network, which aims at opening the way for the private sector to establish traditional or renewable energy generation stations – either through independent power producers (IPPs) or build-operate-own (BOO) structures. These independent producers will be linked to the national grid network…

Analysis

Moving upstream: Deals with a number of IOCs show that interest has held steady
OBG
plus

One of the largest concerns for the Ministry of Petroleum since the start of 2011 has been the potentially adverse effects of political uncertainty, as well as a deterioration of security conditions as Egypt undergoes its challenging political transition. While there has been some concern that the political unrest of the last years would deter international oil companies (IOCs), the bidding rounds that have been staged since the uprising of 2011 suggest that the interest of IOCs in Egypt’s…

Analysis

Meeting demand: A new refinery will help address pressing supply shortages
OBG
plus

A rapidly expanding population and economy has led to ever greater demand for refined petroleum products – especially diesel – in Egypt. This became quite apparent during the first half of 2013, when shortages at petrol stations led to widespread queuing and mounting public dismay. The question of fuel, supply, therefore, is as much a political one as it is an economic one, and has presented a challenge for succeeding administrations. As governments have strived to satisfy the demand for…

Analysis

Wind in the sails: As the government aims to make more use of renewable sources, wind is gaining more attention
OBG
plus

Egypt’s wind resources are some of the most comprehensively studied in the region. The coastline of the Gulf of Suez in particular was investigated in great detail between 1996 and 2003 in a joint effort by the Danish RISO laboratories and the Egyptian Meteorological Authority (EMA), the result of which was the Wind Atlas for the Gulf of Suez West Coast. In 2005 the atlas was expanded to cover the entire land area of Egypt, setting out a persuasive case for the adoption of wind farm technology…

Analysis

Sunny prospects: A wealth of natural resources and a developed manufacturing sector make solar particularly promising
OBG
plus

With its growing reputation as a renewable energy producer over recent years, Egypt has relied largely on its successful utilisation of its wind resource, the most celebrated example of which is the 545-MW wind farm at Zafarana. However, the nation’s arid climate also makes it suitable for large-scale solar projects, the potential of which has been noted by the Ministry of Electricity and Energy (MoEE) in its most recent published strategy. Many of the challenges that have hitherto slowed the…