A BLAST FROM THE PAST

In August 2016, Egypt signed an agreement with Cyprus to discuss cooperation in constructing a submarine pipeline that would transfer Cypriot natural gas from its offshore Aphrodite field to Egypt.

Under the terms of the agreement, Egypt is allowed to use imported gas for domestic consumption or re-export after liquefaction at the two Egyptian liquefied natural gas (LNG) plants. The agreement was signed by Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla and Cyprus’s Energy Minister Georgios Lakkotrypis. The field is estimated to have up to 4.5 trillion cubic feet (tcf) of natural gas.

El Molla commented on the agreement saying that it will help in covering the country’s demand as well as support explorations in the Aphrodite field. In 2018, the minister announced that the project costs from $800 million to $1 billion. Cyprus expected that the initial natural gas production from the Aphrodite field will begin between 2024 and 2025. In addition, El Molla stated that he expects the pipeline will be operational by 2025. It is also worth noting that NewMed Energy, which owns a 30% stake in the field, recently submitted a plan to the Cypriot government for the field’s development. Chevron (the field’s operator) and Shell each own a 35% stake.

An ambitious plan has been drawn up for drilling work to explore natural gas in Egypt, most of which will be offshore. The plan will include the East Mediterranean in the Egyptian territorial waters, along with the Nile Delta in the Mediterranean, and the economic zones in the western Mediterranean, with 35 large exploration wells, with investments amounting to $1.8 billion within two years.

Meanwhile, El Molla referred to several joint projects in the field of renewable energy, as Egypt works to make renewable energy reach 42% of its energy mix by 2030. Contracts have been signed with major Saudi and Emirati companies to add more than 20 gigawatts of wind and solar energy.

PETROLEUM SECTOR RECEIVES FIRST EGYPTIAN-MADE OIL RIG

Minister of Petroleum and Mineral Resources Tarek El Molla, accompanied by the Governor of Suez Abdel Majid Saqr and leaders of the petroleum sector, witnessed the delivery of the first Egyptian-made oil rig.

The minister stated that the expansion of local manufacturing activities for oil and gas industry components provides an economic return and job opportunities.

El Molla noted that the completion of the first Egyptian-made drilling rig, with investments amounting to $6.5 million, is a model of fruitful economic cooperation between Egypt and China. He added that it also a successful model for developing cooperation to transfer manufacturing technology from China to Egypt as an alternative to importing. Most of the parts for the new excavator were manufactured locally by Egyptian hands, and some of them were provided from abroad.

PETROJET, SLB COOPERATE IN IMPLEMENTING EARLY PRODUCTION FACILITIES OF MELEIHA FIELD PHASE II

Petrojet and SLB signed a contractors deal to design, supply and operate an early production facilitating station at the Meleiha field.

The station is considered a part of the second phase of the Meleiha field in the Western Desert for Agiba Petroleum Company.

The second phase of the project includes designing, supplying, implementing and testing a gas pipeline which is 20 inches in diameter and 130 km in length. The project further includes designing, supplying, implementing and testing pipeline networks for 19 wells, with a length of 122 km.

Number Of The Month

2Oil & Gas Digital Bid Rounds in FY 2022/23

The fiscal year 2022/23 witnessed launching two bid rounds to intensify research and exploration activities for untapped oil and natural gas resources in Egypt. The first international one was launched in December 2022, by Egyptian Natural Gas Holding Company (EGAS) through the Egyptian Upstream Gateway (EUG). The aim was to search for natural gas and crude oil in 12 areas in the Mediterranean and Nile Delta, including six o shore and six onshore regions. As announced by EUG, this bid round was o cially closed on July 17.

The second bid round was launched in March 2023, by the Egyptian General Petroleum Corporation (EGPC) to be the first of its kind for the development of brownfields, through EUG. This bid round includes eight producing fields in the Gulf of Suez and the Eastern Desert. This bid round's closing date was extended twice to be set by August 9.

Petroleum Development

SHELL, PARTNERS TO DEVELOP PHASE 10 IN EGYPT’S WDDM CONCESSION

Shell Egypt (BG Delta Limited) a subsidiary of Shell plc., and its partners; the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC) and Petronas signed an agreement to commence development of the tenth phase (phase 10) in Egypt’s Nile Delta offshore West Delta Deep Marine (WDDM) concession in the Mediterranean Sea.

Emissions Reduction Petroleum Minister Participates In Chapter Zero Egypt Meeting

Subject to regulatory approvals, drilling activities are expected to commence in late 2023 when the rig arrives at the location. The phase 10 development program includes the drilling of three wells. The Burullus Gas Company joint venture is the operator of the WDDM concession and the development phase 10.

El Molla Witnesses Inauguration Of The Raven Field Western Desert Complex Natural Gas Connection Project

Minister of Petroleum and Mineral Resources

Tarek El Molla witnessed the inauguration of the first phase linking Raven field, one of the fields north of Alexandria, which is being developed by bp, to the natural gas complex in the Western Desert, operated by the Egyptian Natural Gas Company (GASCO). El Molla stated that the expanded Egyptian role in the natural gas industry was encouraged by a clear vision based on economic reform, political stability, and success in building distinguished international and regional relations.

During the inauguration, El Molla noted that the petroleum industry, with its long history and vision, is always working to achieve the highest economic return from natural resources.

The Western Desert natural gas complex is one of the important petroleum edifices

Agreements

that serve the needs of the local market and petrochemical complexes of natural gas derivatives, the minister pointed out. This connection project came to feed the complex from the fields of the Mediterranean, in addition to the main supply of natural gas from the Western Desert’s fields. It works to enhance the security of supply and achieve full benefit from gas rich in derivatives discovered in the Mediterranean.

EGPC, EGAS, MSMEDA SIGN MOU TO SUPPORT MICRO, SMALL, MEDIUM ENTERPRISES

Minister of Petroleum and Mineral Resources

Tarek El Molla has witnessed signing of a memorandum of understanding (MoU) between the Egyptian General Petroleum Corporation (EGPC), the Micro, Small and Medium Enterprises Development Agency (MSMEDA), and the Egyptian Natural Gas Holding Company (EGAS) to support micro, small and medium enterprises.

This would happen by providing better opportunities to the owners of such projects to increase local production, providing production inputs for them, and raising the competitiveness of Egyptian exports through the expansion at the compressed natural gas (CNG) and centers for converting cars to run with dual fuels.

After the signature, El Molla said that this protocol represents a distinguished model for cooperation between the state’s entities.

It will provide services and the needed funds for the owners and those who desire to initiate start-ups in addition to providing technical support and training programs.

For his part, the CEO of MSMEDA, Bassel Rahmy, elaborated that this agreement comes as part of the county’s strategy for supporting environment initiatives and its economic reflection to the citizens including vehicles conversion to run on natural gas which will reduce pollution as well as reduce petroleum products imports.

On another hand, El Molla and Rahmy witnessed the signing of the contracts for the ninth phase of car conversion project between Gastec, Cargas and MSMEDA aiming to convert 8500 cars to run on natural gas for each company, at a value of EGP 100 million for each company.

EGPC, APACHE SIGN TO REGULATE KHALDA PETROLEUM WORK

Minister of Petroleum and Mineral Resources, Tarek El Molla, witnessed the signing between the Egyptian General Petroleum Corporation (EGPC) and US’ Apache of the regulation to manage the work of Khalda Petroleum Company, the Joint Venture between the two sides.

This is after the merger process that took place between Khalda and Qarun Petroleum Company as a new entity under the umbrella of Khalda, which came as a result of the project to develop and modernize the sector to establish a new entity capable of achieving higher efficiency results and performance in the field of research, exploration, and production of oil and gas.

.El Molla stated that the signing represents a beginning of a new phase to work more efficiently through the merged entity and develop the volume of business, thus paving the way for increasing productivity and achieving tangible and more efficient results on the ground.

Minister of Petroleum and Mineral Resources Tarek El Molla participated in the meeting organized by the Egyptian NGO association Chapter Zero Egypt which was attended by Yasmine Fouad, Minister of Environment, and the Ambassador of the European Union in Cairo Christian Berger.

The meeting was held on the occasion of the start of the association’s work as the first entity that brings together the government and private sectors. Addressing the top management in many companies, it aims to raise awareness about the opportunities and challenges of climate change in cooperation with the European Bank for Reconstruction and Development (EBRD) and the Climate Governance Initiative (CGI).

In his speech, El Molla confirmed that the focus should be on reducing emissions from energy production and use in light of the commitment of the oil and gas industry to carbon neutrality. This should happen, especially since the world will continue to consume various energy sources, including oil and gas.

El Molla added that the implementation of the energy transition is a priority, but it must be according to a realistic, fair and balanced approach. He emphasized that there is no one solution that is suitable for all countries, but there are different methods according to the circumstances of each country or geographical area.

He pointed out that the fluctuations the global energy sector is experiencing require the concerted and integrated efforts and resources of the government and private sectors.

For his part, Ahmed El Sewedy, the first president of the Egyptian NGO association Chapter Zero Egypt, explained that the association is the first of its kind in Africa and the Middle East. He pointed out that it reflects Egypt’s responsibility in the green economy.

Egypt Holds First Hydrogen Mou Coordination Meeting With Eu

The first coordination meeting to activate the memorandum of understanding (MoU) signed between Egypt and the European Union (EU) on the strategic partnership on hydrogen projects was held at the headquarters of the Ministry of Petroleum and Mineral Resources in the Governmental District of the Administrative Capital.

The MoU was signed during COP 27, which Egypt hosted in Sharm El-Sheikh in November 2022. During the meeting, the relevant areas of cooperation that the joint working groups will work on were reviewed, which includes accelerating the deployment of renewable energy generation projects, the necessary infrastructure, the regulatory framework, studying supply and demand, taking into account environmental sustainability, and ways to provide the required financing for the implementation of these projects. The meeting further reviewed developing a plan for execution for each group by formulating a specific action plan with a timetable for the various activities and expected results. This is in addition to merging the outputs of the action plans into a master action plan that contributes to the implementation of the memorandum of understanding.

EGYPT MINING FORUM EGYPT, LIONSBRIDGE SIGN TWO MINING MOUS

On the sidelines of the Egypt Mining Forum 2023, Minister of Petroleum and Mineral Resources, Tarek El Molla witnessed the signing of two memoranda of understandings (MoUs) between Lionsbridge and both Misr Phosphate Company, the General Authority for the Economic Zone of the Golden Triangle.

The first MoU for the implementation and operation of the phosphoric acid plant project in the economic zone of the Golden Triangle. The MoU was signed by Brian Wesson, Executive Chairman of Lionsbridge; Clyde Wesson, Executive Director of Lionsbridge; and Adel Saeed, Chairman of the General Authority for the Golden Triangle Economic Zone.

The second MoU came between the Misr Phosphate Company and the Australian Lionsbridge Company regarding the supply of phosphate ore needed for the phosphoric acid plant project in the economic zone of the Golden Triangle.

EMRA REACHES AGREEMENT WITH BARRICK GOLD, CENTAMIN ON TERMS FOR MODEL OF MINERALS EXPLOITATION AGREEMENT

Minister of Petroleum and Mineral Resources, Tarek El Molla, announced that the Ministry of Petroleum and Mineral Resources reached an agreement with Egyptian Mineral Resources Authority (EMRA), Barrick Gold Canadian Company, the English Company Centamin , on the commercial, fiscal and legal terms for Model of Minerals Exploitation Agreement (MMEA) to a number of concession blocks awarded to the two companies in the international bid round for exploration of gold and associated minerals.

The Minister asserted that this agreement is on top of Egypt Mining Forum’s current edition achievements. The two international companies; Barrick and Centamin, have the experience, fiscal liability (solvency), and techniques to expedite the agreement implementations and achieving work results added to the Mining Sector’s developments.

El Molla Lauds Success Of Egypt Mining Forum 2023

Minister of Petroleum and Mineral Resources, Tarek El Molla, confirmed that the Egypt Mining Forum 2023 in its current edition witnessed momentum and turnout from international and local mining companies, and the participation of mining ministers in a number of countries.

During its two-day activities, panel discussions and specialized technical sessions were held, and everything new in the mining activity was showcased by the companies taking part in the exhibition accompanying the conference. This came during the closing fireside chat concluding the forum under the title ‘Outlining Egypt’s Vision to Develop its Mining Sector’.

The minister stated that the progress and development achieved during the past year as a result of the reforms and measures by the state to develop the mining sector and the success in achieving mutual benefit for all parties confirm that Egypt is on the right track.

El Molla explained that the reforms by the state to develop the mining sector were good, but they have become insufficient, especially in light of the challenges facing the world, due to the Corona pandemic and the Russian-Ukrainian crisis. There are still challenges facing investors, but through cooperation together, these challenges can be overcome and success can be achieved.

Gold Mining Leaders Talk Investments Incentives In Egypt Mining Forum 2023

Minister of Petroleum and Mineral Resources, Tarek El Molla, witnessed the panel of the CEOs of major international gold mining companies working in Egypt, which was entitled ‘Unlocking the Investment Potential of Egypt's Mining Sector’, which was a part of the activities of Egypt Mining Forum 2023.

The panelists including CEOs and seniors from Akh Gold Limited, Centamin LC, Lotus Gold Corporation, and Barrick Gold Corporation, who affirmed that Egypt is on the right path, and that it has provided new advantages and incentives for investment in the mining sector, keeping pace with the global industry.

Martin Horgan, Centamin's CEO stated that Egypt has the geological capabilities and expertise to achieve distinguished results in the field of mining, in addition to the availability of qualified infrastructure including paved roads, a communications network, electricity and adequate water. In addition, Egypt has human capabilities, which pave the way for a brilliant future in the field of mining, which encourages large and medium international companies to work in this promising environment.

Mark Campbell, Chairman & General Manager of Akh Gold highlighted Egypt's distinguished geographical location qualifies it to attract more investments and puts it in the focus of the world's attention, especially after the Ministry of Petroleum and Mineral Resources amended the Mineral Resources Law in 2019. He praised the success of Centamin Company's experience in exploiting the Sukari mine. He pointed out the importance of launching new bids for mineral wealth in encouraging investment and achieving economic progress.

EGAS COMPLETES CRISIS, DISASTER MANAGEMENT TRAINING PROGRAM

The Egyptian Natural Gas Holding Company (EGAS) has completed the second training program, which was held in cooperation with the National Defence College at Nasser Higher Military Academy, from 18 to 21 June 2023.

The training had witnessed the participation of representatives from the company and its subsidiaries and tackled disaster management. The program aimed to introduce crisis management concepts and approaches to effectively resolve crises in a timely manner. Training sought to build trainees skills’ to quickly make the right decision at the right time based on sound information.

The graduation certificates were distributed in the presence of Howayda Kamal, Assistant Vice President of EGAS for Wages and Benefits, who is acting on behalf of Randa Sabra, Assistant Vice President of EGAS for Administrative Affairs; and Hossam Anwar, the supervisor of the program from Nasser Higher Military Academy.

EGYPT TO IMPORT $250M WORTH OF MAZUT TO SECURE ELECTRICITY SUPPLY

Prime Minister Mostafa Madbouly made a televised announcement of a government decision to import additional shipments of mazut for the coming period to achieve balance in the electricity network.

He explained that the volume of mazut imports until the end of August will amount to between $250 million and $300 million.

This decision was announced after a cabinet meeting at its headquarters in New Alamein City, in the presence of Tarek El Molla, Minister of Petroleum and Mineral Resources and Mohamed Shaker, Minister of Electricity and Renewable Energy.

The statement dealt with measures to address the problem of power outages.

NEW NATURAL GAS FUELING STATION OPENS ON ALEXANDRIA-MATROUH ROAD

The first fueling station for cars with natural gas in Marsa Matrouh Governorate, El Alamein City, Gastec / Wataniya, began to provide its services on the Alexandria-Matrouh Road, El Alamein City. Currently, natural gas supply services are available in the North Coast region, which are provided by Gastec through the mobile natural gas supply station on Alexandria Matrouh Road, next to Heidi Village.

This comes within the framework of the ongoing plan of the Ministry of Petroleum and Mineral Resources to expand natural gas supply services in various regions across the Republic. This enhances the demand for the use of natural gas as fuel for cars, in addition to providing economical and inexpensive solutions to save fuel for car users, in light of the fact that the price of a cubic meter of compressed natural gas for cars (equivalent to a liter) is less than the price of 92-octane gasoline by an estimated 56%.

Adnoc

ADNOC MAKES $11B OFFER TO TAKEOVER COVESTRO

ADNOC has offered a proposal of almost $11 billion to takeover Covestro, the German plastics and chemicals maker, according to two persons familiar with the matter.

Covestro has issued previously earnings guidance that reassured markets about its growth prospects. It also resumed a share buyback program. Shares in Covestro were up

Baker Hughes

14% at 46 euros at 1400 GMT, trading at their highest in more than a year.

This will go on the same line with ADNOC’s plans to diversify the economy away from energy and with the transformation strategy, which also invited foreign investment, ADNOC began floating units in late 2017.

It has separately listed firms during the past two years that give investors access to its petrochemicals, fertilizers, drilling services, gas, and logistics businesses.

Sultan al-Jaber, the chief executive of ADNOC, is driving the company’s push into alternative energy, low-carbon fuels like hydrogen and ammonia, as well as liquefied natural gas and chemicals.

Baker Hughes Awards Contract To Supply Gas Technology Equipment For Brazilian Project

Baker Hughes announced that it has been awarded a significant order to be booked in Q2 2023 by MODEC to supply gas technology equipment for the BM-C-33 project in the Brazilian pre-salt Campos area.

According to the company’s statement, the project is developed by Equinor in partnership with Repsol Sinopec Brasil and Petrobras.

Qatarenergy

The order includes providing turbomachinery for a combined cycle power generation solution to be installed in the BM-C-33 FPSO aiming to reduce the project’s carbon footprint, as well as process design engineering and balance of plant.

On this occasion, Ganesh Ramaswamy, executive vice president of Industrial & Energy

Technology at Baker Hughes, said “This order is a testament of our established track record when it comes to technology for FPSO vessels. It also strengthens our relationship with MODEC and is a very important milestone in our collaboration with Equinor and its partners.”

QATARENERGY, CNPC TO CLOSE BIG LNG SUPPLY DEAL WITH CHINA

QatarEnergy and CNPC, Chinese statecontrolled company, are expected to sign a 27-year contract to allow Qatar to secure its second large gas supply with the Chinese company.

Sources in the report elaborated that CNPC will also purchase stock in Qatar’s North Field LNG project’s eastern expansion. The share is equal to 5% of one LNG train with an annual capacity of 8 million tons.

Eni

QatarEnergy has also signed equity partnerships on the project to international oil companies, but has said it plans to retain a 75% stake in the North Field expansion, which will cost at least $30 billion including construction of liquefaction export facilities.

Eni Completes Delivery Of First Commercial Lng Cargo To Piombino

Eni announced that it has delivered natural gas cargo to the SNAM regasification terminal in Piombino, Italy, the company said in a statement.

The cargo which amounts to 90 million cubic meters, was produced at the Sonatrach liquefaction plant in Betihoua, Algeria.

“Unloading operations took place following the completion of the test phase and mark the beginning of the terminal’s commercial operation,” Eni said.

This transaction affirms the necessity of natural gas as a reliable energy source and the capability to meet the growing energy demand while supporting the energy transition, the company added.

SHELL SHELL TO PROVIDE MOROCCO WITH 500 MMCM/Y OF LNG FOR 12 YEARS

The Moroccan Energy Ministry announced that Shell company will supply the country with 500 million cubic meters per year (mmcm) of liquefied natural gas (LNG) according to a 12-year agreement.

The agreement was signed by electricity and water utility ONEE and Shell. Under the deal, the natural gas will be transported from Spanish ports initially, using a gas pipeline that links the two countries, until Morocco builds its own LNG terminals, Reuters added citing the Moroccan ministry

ONEE will use the LNG to operate two power stations in northern and eastern Morocco operated before by Algerian gas sent through the same pipeline.

Totalenergies

TOTALENERGIES, SONATRACH SIGN AGREEMENTS TO ENHANCE NATURAL GAS COOPERATION

TotalEnergies announced that it has signed a series of agreements to boost the cooperation between the two companies in the production of natural gas, the delivery of liquefied natural gas (LNG) to Europe, and the development of renewables in Algeria.

The first agreement states that the two parties will convert the production contracts for the Tin Fouyé Tabankort II (TFTII) and Tin Fouyé Tabankort Sud (TFT sud) fields in southern Algeria (Sonatrach 51%, TotalEnergies 49%) to

Mubadala

the framework established by the new Algerian Petroleum Law enacted on December 11, 2019. These are the first conversions of contracts in Algeria under the regime of the new Petroleum Law.

It will help in increasing the gas production of the two fields which are expected to produce more than 100,000 barrels of oil equivalent per day by 2026 (boe/d) versus a level of around 60,000 boe/d in 2022.The agreement is subject to the approval of the Algerian authorities.

MUBADALA ENERGY, PERTAMINA SIGN AGREEMENT ON ENERGY TRANSITION INITIATIVES

Mubadala Energy and Pertamina have signed an agreement to discuss, explore and potentially engage in energy transition initiatives, primarily focused on carbon capture, utilization and storage (CCUS) applications in Indonesia.