Energy
From The Report: Egypt 2018
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Egypt continues to strive, not just for energy independence, but to return to its status as a regional exporter. With oil and gas fields in the Gulf of Suez, the Mediterranean Sea and the Western Desert, the country has been a site of energy exploration since the early 20th century. With recent discoveries of major natural gas deposits as well as continued exploration announcements, a low-cost operating environment and the anticipation of steady, even rising, global oil prices, Egypt has its sights set on increased petroleum production to meet growing local energy demand, as well as for export growth to acquire much-needed foreign currency.
This chapter contains interviews with Tarek El Molla, Minister of Petroleum and Mineral Resources; Claudio Descalzi, CEO, Eni; Hesham El Amroussy, Chairman and Managing Director, ExxonMobil Egypt; and Walid Sheta, Cluster President for North-east Asia and Levant, Schneider Electric.
Articles from this Chapter
The capacity to change: An uptick in domestic generation could be on the way
The capacity to change: An uptick in domestic generation could be on the wayOBGplus
Egypt continues to strive not just for energy independence, but to return to its status as a regional exporter. With oil and gas fields in the Gulf of Suez, the Mediterranean Sea and the Western Desert, the country has been a site of energy exploration since the early 20th century. This has led not only to substantial oil production, but also to the recent discoveries of major natural gas deposits. With continued exploration announcements, a low-cost operating environment and the anticipation…
Centre of attention: Tarek El Molla, Minister of Petroleum and Mineral Resources, on establishing the country as a regional centre for tradeOBGplus
Interview:Tarek El Molla What steps are being taken to boost the sector’s investment attractiveness? TAREK EL MOLLA: The ministry has adopted a plan to attract investments by offering new international bids and increasing the number of agreements with international companies. Since the June 30 revolution in 2013 the number of new oil and gas agreements has totalled 83, with investment reaching about $15.5bn. This is in addition to the ministry’s commitment to continue paying off the accumulated…
Centre of attention: Tarek El Molla, Minister of Petroleum and Mineral Resources, on establishing the country as a regional centre for tradeOBGplus
Interview:Tarek El Molla What steps are being taken to boost the sector’s investment attractiveness? TAREK EL MOLLA: The ministry has adopted a plan to attract investments by offering new international bids and increasing the number of agreements with international companies. Since the June 30 revolution in 2013 the number of new oil and gas agreements has totalled 83, with investment reaching about $15.5bn. This is in addition to the ministry’s commitment to continue paying off the accumulated…
Digging deeper: New discoveries are sparking wider interest in explorationOBGplus
For decades Egypt has been one of Africa’s largest petroleum producers. Though political unrest has diminished this capacity somewhat in recent years, the country is now hoping to attract further international interest as an exploration site and a production centre. It is aided in this effort by significant offshore and onshore discoveries, a new gas law and regulatory agency, and state efforts to improve the environment for foreign investment. NEW DISCOVERIES: According to the “BP Statistical…
Digging deeper: New discoveries are sparking wider interest in explorationOBGplus
For decades Egypt has been one of Africa’s largest petroleum producers. Though political unrest has diminished this capacity somewhat in recent years, the country is now hoping to attract further international interest as an exploration site and a production centre. It is aided in this effort by significant offshore and onshore discoveries, a new gas law and regulatory agency, and state efforts to improve the environment for foreign investment. NEW DISCOVERIES: According to the “BP Statistical…
Framework finalised: Promulgation of natural gas law supports sector developmentOBGplus
The Natural Gas Regulatory Act, or Law No. 196 of 2017, which was approved by the House of Representatives in the summer of 2017, is the culmination of a long legislative effort by the government. The drafting of the law began shortly after the election of President Abdel Fattah El Sisi in 2014, and the completion of this process followed thereafter in October 2015. By that time, the proposed legislation had become the centre of international attention due to the Italian company Eni’s discovery…
Framework finalised: Promulgation of natural gas law supports sector developmentOBGplus
The Natural Gas Regulatory Act, or Law No. 196 of 2017, which was approved by the House of Representatives in the summer of 2017, is the culmination of a long legislative effort by the government. The drafting of the law began shortly after the election of President Abdel Fattah El Sisi in 2014, and the completion of this process followed thereafter in October 2015. By that time, the proposed legislation had become the centre of international attention due to the Italian company Eni’s discovery…
Independent thinkers: Private producers are set to boost generationOBGplus
As Egypt looks to raise its generation capacity to meet rising demand, the government is seeking to attract independent power producers (IPPs) to a newly liberalised market. Renewable energy plans for 2015-23 call for 920 MW to be provided by IPPs, in addition to the 3.2 GW of government-operated projects and 1.25 GW generated under build-own-operate mechanisms. Complementing this is a goal to secure 20% of generation from renewable sources by 2022. BENBAN COMPLEX: The 1.8-GW Benban solar…
Independent thinkers: Private producers are set to boost generationOBGplus
As Egypt looks to raise its generation capacity to meet rising demand, the government is seeking to attract independent power producers (IPPs) to a newly liberalised market. Renewable energy plans for 2015-23 call for 920 MW to be provided by IPPs, in addition to the 3.2 GW of government-operated projects and 1.25 GW generated under build-own-operate mechanisms. Complementing this is a goal to secure 20% of generation from renewable sources by 2022. BENBAN COMPLEX: The 1.8-GW Benban solar…
Increased liquidity: Claudio Descalzi, CEO, Eni, on fostering cooperation between business and government to meet rising energy demandOBGplus
Interview:Claudio Descalzi How has the sharp decline in global oil prices impacted investment in Egypt? CLAUDIO DESCALZI: Egypt is a key strategic partner for us. Despite persistently low oil prices, we have increased our investment in the country. It will be one of Eni’s top destinations for investment in the coming years, with $2.7bn having already been invested in 2016. Our increased investment follows the successful discoveries of the Zohr gas field, which will begin production by the…
Increased liquidity: Claudio Descalzi, CEO, Eni, on fostering cooperation between business and government to meet rising energy demandOBGplus
Interview:Claudio Descalzi How has the sharp decline in global oil prices impacted investment in Egypt? CLAUDIO DESCALZI: Egypt is a key strategic partner for us. Despite persistently low oil prices, we have increased our investment in the country. It will be one of Eni’s top destinations for investment in the coming years, with $2.7bn having already been invested in 2016. Our increased investment follows the successful discoveries of the Zohr gas field, which will begin production by the…
Turning the tide: Hopes are high that the country can become a gas exporter againOBGplus
New discoveries have brought confidence that natural gas imports, currently the primary fuel source for Egypt’s power plants, will decline significantly once the fields start producing. The government will no doubt be looking to this new production to supply the ever-increasing demand, leading to energy self-sufficiency and, eventually, surplus. PRODUCTION & CONSUMPTION: With production starting from the BP-operated North Alexandria Field in March 2017, Egypt’s natural gas output rose to…
Turning the tide: Hopes are high that the country can become a gas exporter againOBGplus
New discoveries have brought confidence that natural gas imports, currently the primary fuel source for Egypt’s power plants, will decline significantly once the fields start producing. The government will no doubt be looking to this new production to supply the ever-increasing demand, leading to energy self-sufficiency and, eventually, surplus. PRODUCTION & CONSUMPTION: With production starting from the BP-operated North Alexandria Field in March 2017, Egypt’s natural gas output rose to…
Sticker shock: Steep price rises have hit both companies and householdsOBGplus
The significant increase of electricity prices throughout 2017, coupled with other economic reform measures, placed considerable strain on both individual Egyptians and businesses in the country. Households and firms alike are banking on this short-term pain leading to long-term gain in the form of new investments across industries. PRICE HIKE: As highlighted in a 2017 report from the Egyptian Initiative for Personal Rights (EIPR), electricity costs have been steadily increasing in recent…
Sticker shock: Steep price rises have hit both companies and householdsOBGplus
The significant increase of electricity prices throughout 2017, coupled with other economic reform measures, placed considerable strain on both individual Egyptians and businesses in the country. Households and firms alike are banking on this short-term pain leading to long-term gain in the form of new investments across industries. PRICE HIKE: As highlighted in a 2017 report from the Egyptian Initiative for Personal Rights (EIPR), electricity costs have been steadily increasing in recent…
Bold moves: Hesham El Amroussy, Chairman and Managing Director, Lubricants Manager Africa and Middle East, ExxonMobil Egypt, on the positive effect of government reformsOBGplus
Interview:Hesham El Amroussy What have been the effects of the fuel subsidy reforms on the energy sector, and has it impacted other areas of the economy? HESHAM EL AMROUSSY: Energy subsidies have long been a part of the social contract in Egypt, and indeed the region, for many years. It has also put a very real burden on the country’s budget, which is already in deficit. The Egyptian economy required many reforms, but one of the most critical was subsidy reform, and the process began almost…
Bold moves: Hesham El Amroussy, Chairman and Managing Director, Lubricants Manager Africa and Middle East, ExxonMobil Egypt, on the positive effect of government reformsOBGplus
Interview:Hesham El Amroussy What have been the effects of the fuel subsidy reforms on the energy sector, and has it impacted other areas of the economy? HESHAM EL AMROUSSY: Energy subsidies have long been a part of the social contract in Egypt, and indeed the region, for many years. It has also put a very real burden on the country’s budget, which is already in deficit. The Egyptian economy required many reforms, but one of the most critical was subsidy reform, and the process began almost…
Electric avenue: Walid Sheta, Cluster President for North-east Africa and Levant, Schneider Electric, on optimising energy consumption and improving efficiency in transmission and distributionOBGplus
Interview:Walid Sheta What are the biggest financial pressures faced by renewable energy companies in Egypt? WALID SHETA: There are 680m people in Africa and the Middle East who do not have access to electricity. The electrification rates in Africa and the Middle East are 47% and 89%, respectively, with average annual power cuts of 56 days in Africa and 14 days in the Middle East. Therefore, we are working on providing countries in these regions with innovative technological solutions that…
Electric avenue: Walid Sheta, Cluster President for North-east Africa and Levant, Schneider Electric, on optimising energy consumption and improving efficiency in transmission and distributionOBGplus
Interview:Walid Sheta What are the biggest financial pressures faced by renewable energy companies in Egypt? WALID SHETA: There are 680m people in Africa and the Middle East who do not have access to electricity. The electrification rates in Africa and the Middle East are 47% and 89%, respectively, with average annual power cuts of 56 days in Africa and 14 days in the Middle East. Therefore, we are working on providing countries in these regions with innovative technological solutions that…
