· In fact Egypt is the largest non-OPEC oil producer in Africa and the second largest gas producer, the fifth largest oil producer and the largest crude oil refining capacity in Africa.
· Egypt possesses a key role in regional and global energy markets. This is most likely attributed to its geographical proximity and strategic location at the crossroad of international trade of oil and gas, in addition to the control of two major transit routes: the Suez Canal and the Suez-Mediterranean Pipeline (SUMED).
·The west of Suez Gulf area is considered one of the most promising sites for construction of large wind farms projects due to the high wind speeds ranging between 8-10 meter/second and due to the availability of large uninhabited desert area
·Egypt's power Strategic plan depends on the diversification and expansion of energy resources and rational use of conventional energy resources.
·Ongoing reforms in the regulatory framework and subsidies creating large opportunities for the private sector.
·Oil and Gas is one of the most dynamic industries in Egypt, and hydrocarbon production is by far the largest single industrial activity in the country. Egypt has significant energy resources, both in traditional fossil fuels and in renewable energy. Egypt's proven hydrocarbon reserves stood at 3.3 billion barrels of oil and 62.8 trillion cubic feet (tcf) of natural gas at the end of 2017. The Government of Egypt encourages international oil companies (IOC) to participate in the oil and gas sector, and currently more than fifty IOCs are operating in Egypt.[i]
· Egypt plays a vital role in international energy markets through the operations of the two Suez Canal transit points and the Suez-Mediterranean (SUMED) pipeline. Expanded in 2015, the Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments travelling southbound from North Africa and along the Mediterranean Sea to Asia. Fees collected from the operation of these two transit points are significant sources of revenue for the Egyptian government.
·The oil sector in Egypt has signed around 83 oil and gas exploration deals with IOCs between November 2013 and December 2017, worth at least USD 15.5 billion, and signing bonuses of more than USD 1 billion for the drilling of 319 wells. In 2018, a new international bidding round was announced, including 9 blocks for Gulf of Suez and Western Desert. In 2019, the Minister of Petroleum and Mineral Resources has signed contracts with 12 new exploration and production concessions with Exxon Mobil, Shell, BP and others. The estimate of the investment in the first stage is around $800 million. The new exploration areas include the Western Desert, Gulf of Suez, the Nile Delta, and the Mediterranean. The Egyptian government is currently accepting bids to explore for oil and gas in the Red Sea, and it is expected to open up its Western Mediterranean waters in a new bid round soon
·GOE investment in natural gas was expanded by 25% in FY 2017, adding to an expansion of 33% the previous fiscal year. Crude oil projects did not see a similar favorable return on investment, but that is not to say the opportunities are not there, as several multinational firms announced commitments to increase their investment to total USD 10 billion in fiscal year 2018/2019.[ii]
[i]Ministry of Petroleum www.petroleum.gov.eg
[ii] Egypt natural gas EGAS, http://www.egas.com.eg