Emirates News Agency - Egyptian Minister of Petroleum to WAM: Drilling 35 new exploration wells for natural gas over the next two years, with investments of $1.8 billion

2023-07-04 13:27:30

Tuesday, July 4, 2023 – 5:26 PM

– 284 oil and gas discoveries during the past five years, 217 for oil and 67 for gas.
We expect oil prices to continue at levels of more than $70 a barrel to $80 a barrel.
We are currently working on updating the Integrated Energy Strategy 2040 and finalizing the first national strategy for hydrogen utilization.
Petroleum and natural gas constitute 93% of the primary energy sources in Egypt.
Egypt’s production of oil and gas meets 75% of domestic consumption.
Natural gas is the most important and most consumed in the energy mix in Egypt, as it is a clean transitional fuel.
– “Narges, Satis, Noor” and “Framed and El-Obeid” fields are an important addition to the oil wealth in Egypt.

Updating the integrated and sustainable energy strategy until 2040.

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From Nasser Al-Jabri and Ahmed Al-Nuaimi:
VIENNA, 4th July, 2020 (WAM) — His Excellency Eng. Tarek El-Molla, Egyptian Minister of Petroleum, confirmed that his country has begun implementing an ambitious program in cooperation with major international companies, “Italian Eni, Chevron, ExxonMobil, Shell and BP” to drill 35 new exploration wells for natural gas in the Mediterranean Sea and the Nile Delta within Two years from now until July 2025, with a total investment of $1.8 billion, with 21 wells during the current fiscal year 2023/2024 and 14 wells during the fiscal year 2024/2025.
Engineer Tariq Al-Mulla said, in an interview with the Emirates News Agency, WAM, on the sidelines of his participation in the eighth international OPEC conference, which will start tomorrow in the Austrian capital, Vienna, that Egypt is currently working on developing the fields of “Nargis, Satis and Nour” in the Mediterranean and east of Damanhur in the Nile Delta and ” Pharamed and El-Obeid” in the Western Desert, and these discoveries represent an important addition to the current oil wealth production in Egypt.
Regarding the total oil discoveries and the volume of production, the Egyptian Minister of Petroleum said that during the past five years, the Egyptian oil sector and international companies drilled a large number of exploratory wells, amounting to 576 wells, and as a result, 284 new discoveries of oil and gas were made, 217 for oil and 67 for gas, and these discoveries added reserves It amounted to 1320 million barrels of oil equivalent, including 295 million barrels of crude oil and condensate, and 5750 billion cubic feet of gas. These discoveries, in light of the rapid plans to put them on the production map, contributed to maintaining production rates and facing the natural decrease in it.
Regarding the volume of Egyptian production of oil and gas and its percentage of the energy needs of the local market.. Eng. Tarek El-Molla said that petroleum and natural gas resources constitute about 93% of the primary energy sources in Egypt, and our production of oil and gas meets about 75% of domestic consumption, and we continue to meet the rest Our needs are through external imports, and natural gas represents the most important fuel currently and the most consumed in the energy mix in Egypt, as it is a clean transitional fuel that Egypt has adopted as a major option in the energy mix for its domestic consumption, being the least dense fossil fuel in terms of carbon emissions.
And about a vision for the oil market during the next year and the expected repercussions for oil prices until the end of 2024 after the decision to extend the cut to “OPEC +” .. The Egyptian Minister of Petroleum said this decision comes within the framework of the active role of OPEC and cooperation with producers outside it under the umbrella of the “OPEC +” alliance in Supporting stability and balance in the market for the benefit of producers and consumers through decisions that are constantly responsive to the changes and dynamics of supply and demand in the market.
His Excellency indicated that there are a number of factors affecting the determination of crude oil prices, for example; Supply from OPEC countries, supply from countries outside the organization, demand from major consuming countries or the rest of the world, inventory levels in importing countries, the state of global financial markets, and the price of the dollar because it is the strongest currency in the world and on the basis of which the price of oil is determined. Often when the “dollar price” rises against other currencies, this happens A drop in oil prices.
He added that determining the trends of crude prices in global markets depends on the clarity of the picture for some factors that are characterized by a high degree of uncertainty, such as the expectations of global economic growth, the expectations of the growth of the Chinese economy, the largest oil consumer in the world, and the risks of recession in the United States and the European Union, as it faces the expectations of the oil market in the short term. Many contradictory trends on both sides of demand and supply, in the form of fears of economic recession and shortage of supplies with the continuing repercussions of the Ukrainian crisis.
He continued: “Although the recovery of the Chinese economy supports the growth of global demand for oil, the continuing fears of slowing economic growth with high interest rates and accelerating inflation cause a state of uncertainty. And – there are still persistent concerns about slowing economic growth rates in the main regions.” In the world, markets prevail, offset by factors that drive oil prices upward, such as the lack of expansion in US oil production and low levels of surplus energy among OPEC members.It is expected, in light of the existing data, that oil prices will continue to fluctuate at levels ranging from more than $70 a barrel to about $80. dollars per barrel.
On the strategy in the field of new and renewable energy and the number of projects to be implemented in this regard, the Egyptian Minister of Petroleum said that the Egyptian government had recently decided that the percentage of energies generated from new and renewable sources in the energy mix for the electricity sector would be 42% by 2030 instead of 2035. This amendment came within the framework of affirming Egypt’s commitment to confronting climate change, especially after organizing the Cop27 climate summit.
He added that Egypt is currently updating its integrated and sustainable energy strategy until 2040 in light of increasing the contribution of new and renewable energy and the transition to a green economy with the introduction of the use of hydrogen as a clean source of energy, especially in light of Egypt’s competitive advantage and potential to expand the production of new energy and hydrogen. Completion of the first national strategy for the exploitation of hydrogen. Egyptian and international partnerships were also launched in this field, including the strategic partnership with the European Union during the climate summit, as well as the agreement between Egypt and Germany for cooperation in this field. We also launched projects by the oil and gas sector to produce hydrogen derivatives from ammonia and green methanol in cooperation with Skatek International Company.
His Excellency added that the economic reforms implemented by Egypt enabled it to review the energy mix and increase the proportion of new and renewable energies in it, especially that Egypt has a diverse infrastructure and a distinguished geographical location, which qualifies it to become one of the largest producers of green energies in the region.
He pointed out that the Egyptian state signed, during the COP27 Conference, about 23 memorandums of understanding for green hydrogen projects and its derivatives, including 9 framework agreements with major international companies, with a total investment of $80 billion.
On the energy sector roadmap in Egypt during the current decade, the Egyptian Minister of Petroleum said that the petroleum sector is one of the most important economic sectors in Egypt, which mainly contributes to advancing development. The sustainable development of Egypt and the strengthening of Egypt’s role as a regional center for energy and for the petroleum sector to become a role model for the rest of the country’s sectors in modernization and development.
He added that to implement this vision, the petroleum sector in Egypt is working on an integrated strategy that includes 3 main axes, including: “Securing energy sources, by increasing energy supplies, managing energy demand, and diversifying its sources. In addition to achieving financial sustainability and maximizing the added value of Egypt’s oil and gas resources.” In addition to promoting optimal management methods for the sector through improving governance systems, organizational structure, investing in human resources and providing a suitable environment for increasing investments in the sector.
He pointed out that in order to translate the strategy into tangible results, work is being done on several axes in the various activities of the value chain of the oil and gas industry, where work is being done in the field of research and exploration activities to increase the areas of research and exploration by issuing new global bids in various geological basins and attracting new foreign investments. By marketing new and promising areas through the Egypt Digital Exploration and Production Portal “EUG” and using advanced technology to increase production in aging areas and fields such as the Gulf of Suez, as well as working to increase the success rates of search and exploration operations by taking advantage of drilling results in developing geological visualizations for drilling operations.
His Excellency continued: “With regard to transportation, distribution and storage activities, the expansion of crude, gas and petroleum products transport pipeline networks will continue, and the development of petroleum ports and marine shipping centers to increase shipping capacities and raise absorption efficiency, in addition to increasing storage capacities for petroleum products. And continuing to enhance Egypt’s pivotal role as a regional energy center by By maximizing the utilization of the advanced infrastructure of the petroleum sector and receiving more gas from the eastern Mediterranean region for re-export to meet the growing demand of European markets for energy.
His Excellency added: “With regard to refining activities, the sector will continue to implement projects to increase refining capacity, develop and raise the efficiency of existing refineries by adding new manufacturing processes to convert low-value products into high-value products, in a way that supports the sector’s plan and objectives to cover the needs of the local market of the main products” diesel-gasoline. The new refinery projects that are being implemented will also contribute to increasing the local production of diesel and gasoline and reducing their imports, which supports securing and meeting the local needs of petroleum products.
His Excellency stated: “In the field of the petrochemical industry, which is one of the most important ways to increase the added value of local oil and gas resources, a package of new projects will be implemented, such as the production of soda ash and mineral silicon, which will help meet the needs of the local market for specialized petrochemical products and limit imports, thus enhancing The contribution of the petroleum sector to supporting the national economy and expanding the establishment of integrated industrial complexes, as well as supporting the process of transferring and localizing technology in line with the directions of the Egyptian state.
Engineer Tarek El-Molla stressed that reducing emissions and promoting the transition to sustainable and low-carbon energy systems is one of the main elements in the vision and strategy of the petroleum sector in Egypt. The petroleum sector works on a number of main axes to achieve emissions reduction and energy transition, which include considering natural gas as the first choice as a fuel, especially in the transition to low-carbon sources, improving energy efficiency, implementing carbon removal projects, and setting the appropriate institutional framework to enhance the sector’s efforts in this field. Green petrochemical production and the use of renewable energy in various production sites and facilities, as well as low-carbon hydrogen production. In this regard, the petroleum sector will continue to implement projects to reduce emissions in cooperation with major international energy companies to benefit from the best experiences and practices.