EOG Newspaper June 2023 Issue

Dear Reader,

Natural gas has gained increasing attention as a green fuel in recent years. Unlike coal and oil, natural gas is a cleaner-burning fuel that emits significantly less greenhouse gases and pollutants. This makes it a more sustainable alternative for industries and households looking to reduce their carbon footprint and contribute to a cleaner environment.

Thanks to its rich natural gas reserves, strategic location, and major infrastructure projects, Egypt has become a significant player in the global natural gas market.

Egypt's geographical location at the crossroads of Europe, Asia, and Africa makes it a vital transit hub for natural gas exports from the Middle East. Additionally, Egypt's large domestic market and its extensive liquefied natural gas (LNG) export facilities make it a prominent exporter of natural gas to various countries across the world.

Over the years, the country has undergone various notable transformations in its natural gas market, including its transition from a net importer to an exporter and its recent efforts to become a regional natural gas hub.

In this month’s issue, we are going to showcase Egypt's potential to influence and shape the global natural gas market. We also shed light on Egypt’s journey to expand natural gas utilization and highlight some of the economic advantages of using natural gas and its role in supporting energy security.

Readers will also have the pleasure of learning about some of Egypt’s achievements in the renewable energy field with in-depth content provided by our Research and Analysis Department

We are also offering two interesting coverages. One of the events is Oil & Gas Decarbonisation Workshop, which was organized by the EOG Committee and the other is the Europe – Egypt Energy Interconnectivity event, which was organized by the Swedish embassy in Cairo. The EOG team hopes you have an enjoyable and informative journey through our issue for June.

IHAB SHAARAWY Managing Editor

CONTENTS

Oil & Gas Decarbonisation

Workshop: Engaging the Energy Sector to Lead Climate Action in Egypt

General Manager

Ayman Rady

Research & Analysis Manager

Dr. Mahinaz El Baz

Managing Editor

Ihab Shaarawy

Senior Editors

Rana Al Kady

Nader Ramadan

Senior Writer

Sarah Samir

Staff Writers

Fatma Ahmed

Israa Nour Eldeen

Senior Research Analyst

Reham Gamal

Research Analysts

Jolly Monsef

Mariam Ahmed

Maha Balbaa

Statistician

Nada Abbas

Chief Reporter

Wael El-Serag

Business Development Manager

Tamara Ewiss

Marketing Specialist

Shrouk Ihab

Creative Art Director

Omar Ghazal

Graphic Designers

Merna William

Amira Hassan

3D Visualizer

Tamer Gamal

Photographer

Hady Nabil

CEO Executive Assistant

Noha Zayed

Web Master

Olfat Kamel

Web Developer

Mohamed Elwakeel

Administration

Taghreed Mounir

Senior Accountant

Mahmoud Khalil

Accountant

Mohamed Nagy

Distribution Officers

Mahsoub Kenzi

Mohamed El-Sayed

Mahmoud Nabil

Osama Mohamed

Hesham Mohamed

Publisher

Mohamed Fouad All

EL SISI, CHRISTMANN DISCUSS APACHE’S ACTIVITIES IN EGYPT

President Abdel Fattah El Sisi met with John Christmann, CEO of Apache, and the two vice presidents of the company, in the presence of Tarek El Molla, Minister of Petroleum and Mineral Resources.

The meeting followed up on the activities of the company in Egypt and its current programs, as well as its plans during the coming period to increase the volume of its work in the fields of research, exploration and production of oil and gas.

El Sisi appreciated the distinguished successes of the company in Egypt over the past 30 years, which made it the largest oil producer in the country. He highlighted Egypt’s keenness to provide the appropriate climate to attract and increase investments in all sectors, especially oil and gas.

For his part, Christmann appreciated the positive experience of cooperation with Egypt over the past decades, stressing that it represents a success story and a role model in the Middle East.

EGYPT LNG EXPORTS REACH 1.9M TONS IN Q1 2023: OAPEC

The Organization of Arab Petroleum Exporting Countries (OAPEC) revealed that Egypt’s liquefied natural gas (LNG) exports reached 1.9 million tons in Q1 2023, according to Al Ahram Gate.

Egypt has thus maintained the same levels of exports achieved during the same period the previous year.

The report highlighted that this is due to an increase in local production after the

development of gas fields in the eastern Mediterranean region.

According to preliminary estimates, the two liquefied gas stations in Damietta and Idku exported about 1.44 million tons to European markets, including the European Union (EU), Turkey, and Britain; equivalent to about 76% of Egypt’s total LNG exports during the quarter.

PETROLEUM FDIs RECORD NET OUTFLOW OF $857.5M IN H1 2022/23

Foreign direct investments (FDIs) in the petroleum sector recorded a decline in net outflow by $277.9 million to reach $857.5 million during the first half of fiscal year (FY) 2022/23, according to the Central Bank of Egypt (CBE) Balance of Payment.

The total inflow, which represents new investments for foreign oil companies, increased to about $2.6 billion, compared to about $2.2 billion, during the same period of the preceding FY.

Transfers abroad, which represent the recovery of costs incurred by foreign partners during previous periods in research and development work,

increased by $161.6 million to record about $3.5 billion.

The change in the CBE’s obligations recorded a net inflow of about $1.5 billion, compared to about $2.3 billion.

Meanwhile, the petroleum trade balance achieved a surplus of about $1.8 billion, compared to about $2.1 billion, as a result of the increase in petroleum exports by $690.6 million, due to the increase in natural gas exports by about $2 billion. This rise was limited by the decline in crude oil exports by about $690.5 million and petroleum products by $652.4 million.

EGYPT, WORLD BANK EXPLORE COOPERATION IN NATURAL GAS, MINING, EMISSIONS REDUCTION

Minister of Petroleum and Mineral Resources Tarek El Molla has received the Regional Director of the World Bank’s (WB) Infrastructure Department in the Middle East and North Africa region Paul Noumba where they discussed how to boost cooperation in natural gas, emissions reduction and natural gas fields.

During the meeting, El Molla highlighted the necessity of the strategic partnership between the petroleum sector and the WB in the different fields, including the initiative to deliver natural gas to households all over Egypt.

Additionally, El Molla mentioned the sector’s projects for emissions reduction which were announced in

A BLAST FROM THE PAST

In June 1987, "Kashf Tarek", which was the biggest and latest line for natural gas discoveries in the Western Desert, had been inaugurated by Khalda Petroleum Company.

Khalda Petroleum Company is a joint venture company established in 1985 between the Egyptian General Petroleum Corporation (EGPC) and Apache Corporation. The company’s main work area is located in Egypt's Western Desert, where its main activities include drilling, production, and the processing of oil and gas as well as shipments.

Among the company’s most important activities is oil and natural gas exploration. It is also active in drilling and developing oil and gas wells in its concession areas, in addition to completing and re-completing wells to achieve the highest production rates. Seismic surveys are conducted as well on large areas within the range of its work, as the company drills a large number of wells annually.

It is worth noting that the company made eight oil discoveries during the year 2022, with a success rate of 50%.

EGP 3.5 billion

COP27, underlying the role of the East Mediterranean Gas Forum (EMGF) in this regard. He also stated the efforts carried out to set a sustainable climate investment in the mining sector, referring to the emission reduction projects underway in this sector.

Moreover, the minister expressed his desire to cooperate with the WB to confront the phenomenon of random exploration by following the best international practices in this regard. For his part, Noumba affirmed the role of Egypt as a regional energy hub and the WB’s support to all the country’s efforts for emissions reduction during the energy transition period in parallel with providing Europe with natural gas to accelerate green hydrogen projects.

WINTERSHALL DEA MAKES NATURAL GAS DISCOVERY IN THE ABU MADI RESERVOIR

Wintershall Dea has found natural gas in its Disouq concession in the onshore Nile Delta. The step-out well (NSG-3) targeted the Abu Madi reservoir inside the Disouq concession under the development lease. It follows a previous discovery in the East Damanhour exploration block in January 2023. The Disouq gas project is operated by DISOUCO, a Joint Venture between Wintershall Dea and the Egyptian Gas Holding Company (EGAS).

“The latest reserves additions is another example of the great cooperation with our partner EGAS in the Joint Venture and will prolong production at Disouq,” Olaf Reetz, General Manager at the DISOUCO JV, commented. NSG-3 well was drilled to a total depth of 3070 m and encountered 22 m of the reservoir in the Abu Madi formation.

NUMBER OF THE MONTH

Natural Gas Deliveries Allocation in FY 2023/24 Budget

Egypt is keen to expand the use of natural gas and increase the number of its consumers. The Minister of Finance announced that EGP 3.5 billion will be allocated to cover the cost of delivering natural gas to households in the budget of the fiscal year (FY) 2023/24. It is worth mentioning that this allocation is same as in the FY 2022/23 budget, according to Ministry of Finance (MoF).

This came in light of the Ministry of Petroleum and Mineral Resources' (MoPMR) continuous e orts to implement the national project for delivering natural gas to households in line with the state’s policy to create a kind of social justice, especially for the most relevant governorates and regions. The total number of households that are connected to natural gas reached about 14 million in all governorates since the start of the activity until the end of December 2022, according to MoPMR.

DISCUSSIONS

EMGF’S 23RD EB MEETING DISCUSSES ACTIVITIES, FUTURE PLANS

The 23rd East Mediterranean Gas Forum (EMGF) Executive Board meeting was held with the participation of EB members from EMGF Member Countries and Observers, discussing the latest updates of its activities.

The meeting was opened with remarks from EMGF Secretary General Osama Mobarez and EB Chairman Alaa Hagar, Undersecretary for the Minister’s Technical Office at the Egyptian Ministry of Petroleum and Mineral Resources.

In his speech, Mobarez commended the efforts and support of the EMGF EB Members, and reaffirmed that “Cooperation is an utmost priority for our organization”. Additionally, the Secretariat presented the management report which included

all Secretariat activities updates, along with updates on the Long-Term Strategy Implementation, and the Scientific and Technical Advisory Committee (STAC) Taskforce activities progress and next steps.

EGYPT, BITCRUDE ENERGY LP EXPLORE OIL REFINING PROJECT WITH ZERO CARBON EMISSIONS

Minister of Petroleum and Mineral Resources

Tarek El Molla and Minister of Environment

Yasmine Fouad have met with top officials from Canadian firm BitCrude Energy LP to discuss a project for crude refining and processing using zero emissions techniques. The meeting was held with the company’s Chairman Cal Broder and its Vice President of Business Development Wael Zikry.

AGREEMENTS

During the meeting, the company provided a presentation on its innovative technologies which it developed for crude processing and transportation with zero carbon emissions. BitCrude Energy LP also expressed its desire to cooperate and invest in Egypt, especially with the country’s sustainability efforts. The company offered to carry out a project for crude refining with zero carbon emissions.

PM APPROVES SIX NEW DRAFT LAWS FOR PETROLEUM AGREEMENTS

Prime Minister Mostafa Madbouly has approved new six law drafts to authorize the Minister of Petroleum and Mining Resources

Tarek El Molla for petroleum agreements between the Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Company (EGAS), and a number of international oil companies (IOCs).

The approved agreements included the one between EGPC and Trident Petroleum Company to amend the Compliance Agreement issued under Law No. 204 of 2017, for the petroleum exploration, development, and production in the East Marine Live Development Zone, in the Gulf of Suez (Magawish offshore area).

Another agreement with the EGPC was approved for petroleum exploration,

development, and production at the Ashrafi concession area in the Gulf of Suez.

The third agreement was approved with the EGPC for petroleum exploration, development, and production at the Ras Al Ash concession area in the Gulf of Suez.

ANRPC, SCATEC SIGN GREEN METHANOL PROJECT AGREEMENT

Minister of Petroleum and Mineral Resources, Tarek El Molla, and the Norwegian Ambassador to Cairo, Hilde Klemetsdal, witnessed the signing of an agreement for the joint development of a new green methanol production project, the first of its kind in Egypt and the Middle East, the ministry said in a statement.

The deal was sealed by the Alexandria National Refining and Petrochemical Company “ANRPC” and the Norwegian company Scatec, a pioneer in the field of

green energy solutions, in cooperation with the Egyptian Company for Bioethanol. The agreement was signed by Salah Gaber, ANRPC Chairman, and Terje Pilskog, Scatec CEO.

El Molla stated that the agreement is a new step that reflects the progress of the petroleum sector on the path of implementing green energy projects and low-emissions fuel, in cooperation with leading international companies.

NATURAL GAS

EL MOLLA REVIEWS PROGRESS OF NATURAL GAS UTILIZATION EXPANSION PROJECT

Minister of Petroleum and Mineral Resources Tarek El Molla has received the report on the natural gas utilization expansion project for the fiscal year (FY) 2022/23 for the periodical follow-up.

The report mentioned that 61 new stations for natural gas supply have been established during the period from July 2022 to March 2023 which brings the total number of stations to 688 operated stations while another 221 are under preparation to start operation during the coming period with a total number of 909 stations. The target number of stations is 1,000 across Egypt. It added that there are 50,000 vehicles converted to run with dual engines during the period between July 2022 to March 2023 bringing the total number of converted vehicles to 500,000 vehicles since the start of the project.

EGYPT ALLOCATES EGP 3.5B FOR NATURAL GAS DELIVERIES IN FY 2023/24 BUDGET

The Ministry of Finance announced that EGP 3.5 billion will be allocated to cover the costs of delivering natural gas to Egyptian households in its FY 2023/24 budget.

This came as part of an effort to expand the use of natural gas and increase the number of its consumers.

Additionally, Egypt is aiming to increase its sustainability projects to 50% through launching a package of incentives and initiatives which support the green transition and renewable energy.

EGYPT GAS MAKES EGP 93.85M IN NET PROFITS DURING Q1 2023

Egypt Gas reported around EGP 93.85 million in net profits after taxation for Q1 2023, compared to around EGP 75.89 million during the same period of 2022, according to a financial statement submitted to the Egyptian stock exchange on May 15th.

Moreover, the report stated that the operating revenues recorded about EGP 1.01 billion during Q1 2023, compared to around EGP 1.26 billion during the first three months of 2022.

EL MOLLA REVIEWS PROGRESS OF NATURAL GAS UTILIZATION EXPANSION PROJECT

Minister of Petroleum and Mineral Resources Tarek El Molla has received the report on the natural gas utilization expansion project for the fiscal year (FY) 2022/23 for the periodical follow-up. The report mentioned that 61 new stations for natural gas supply have been established during the period from July 2022 to March 2023 which brings the total number of stations to 688 operated stations while another 221 are under preparation to start operation during the coming period with a total number of 909 stations. The target number of stations is 1,000 across Egypt. It added that there are 50,000 vehicles converted to run with dual engine during the period between July 2022 to March 2023 bringing the total number of converted vehicles to 500,000 vehicles since the start of the project.

According to the report, nine conversion centers have been opened during the same period to bring the total number of the centers to 130. The report pointed out that 930 million cubic meters (mmcm) of natural gas have been sold during the mentioned period, increasing by 26% compared to the same period in the previous year which is an indication of the strong growth of using natural gas as fuel.

ATON ANNOUNCES START OF RC EXPLORATION DRILLING PROGRAM AT ABU MARAWAT CONCESSION

Aton Resources announced that it has begun the program of reverse circulation percussion (RC) exploration drilling at Abu Marawat Concession in the Eastern Desert of Egypt.

The drilling program is being done over 10,000 m. Drilling has commenced at the West Garida prospect which is only 3 km

away from the company’s Hamama West deposit, the company said in a statement.

It added that “a short program of 19 holes has been planned at West Garida, for a total of 1,370 meters to follow up on a previous drill intersection of 41.7 g/t Au, 263 g/t Ag and 2.08% Pb over a 1m interval, Mineralisation at West Garida is associated with narrow high grade quartz veins.”

INTERNATIONAL WORKSHOP FOR OIL, GAS EXPLORATION TECHNOLOGIES HELD IN NEW ALAMEIN

A technical workshop titled “New Technologies for Discovering New Fields” was held for the first time in New Alamein City over three days, under the patronage of the Ministry of Petroleum and Mineral Resources (MoPMR).

It was organized by the Society of Exploration Geophysicists (SEG) in cooperation with the Egyptian Natural Gas Holding Company (EGAS).

The workshop was attended by several petroleum officials and chairmen of international companies in addition to 130 experts in the oil and gas exploration and production (E&P) industry from 40 international companies in eight different countries to discuss topics related to exploration activities in the Mediterranean.

During his speech at the event, Minister of Petroleum and Mineral Resources Tarek El Molla affirmed the necessity of continuous dialogue around exploiting the exploration potentials in Egypt through the specialized technical workshops, especially after the success of the two workshops held for promoting exploration in the Red Sea.

PHOSPHATE MISR EXPANDS EXPLORATION ACTIVITIES

The Ministry of Petroleum and Mineral Resources began expanding the research and exploration works for phosphate ore through the implementation of an urgent plan for exploration work on 450 square kilometers of Egypt’s phosphate concession areas in the New Valley, Aswan, and the Red Sea governates, Al Ahram reported.

PhosPhate Misr’s Chairman Mohamed Abdel-Azim said that the assignments have begun, during the company’s general assembly meeting, to pump more investments to intensify research and exploration activities for natural resources

EXPORTS

EL MOLLA, SPANISH AMBASSADOR DISCUSS OIL, PETROCHEMICAL INVESTMENTS IN EGYPT

and accelerate the development of new discoveries.

He explained that the company’s concession areas amount to 450 square kilometers, 250 square kilometers in the Abu Tartour plateau in the Kharga center in the New Valley, which is the largest area in which the company conducts exploration and extraction activities, 75 square kilometers in the Sebaia area in Aswan; 50 square kilometers in the Red Sea; and 75 square kilometers managed by the company after agreement with Egyptian Mineral Resources Authority (EMRA) in the Red Sea regions.

EGYPT EXCELS AS A KEY LNG EXPORTER TO THE EU: WORLD BANK REPORT

The European Union (EU) has significantly increased its imports of liquefied natural gas (LNG) from Egypt, the US, Angola, Norway and Qatar, the Middle East News Agency stated, quoting a World Bank report.

LNG has been transported through pipelines from both Azerbaijan and Norway, and of these countries, only Egypt, the United States, and Angola have made significant progress in converting the gas associated with oil extraction into natural gas exports rather than flaring.

This came in an analysis by the Information and Decision Support Center (IDSC) in the Cabinet for everything related to global economic reports of interest to Egyptian affairs. The IDSC reviewed the World Bank report issued on “tracking gas flaring activities in the world.”

Fitch Solutions: Egyptian Petrochemical Sector Exports Grew 45% in 2021

Fitch Solutions indicated that the Egyptian petrochemical, chemical, and cement industry exports have grown by 45% reaching $6.7 billion by 2021 driven by natural gas growth and high prices, the Information and Decision Support Center (IDSC) announced.

These figures exceed the expectations of the Chemical and Fertilizer Export Council, standing at $5.8 billion increasing by 11%.

Fitch recommended continuous growth in the future during Egypt’s transition from importer to exporter. The IDSC added that the Ministry of Petroleum and Mineral Resources is carrying out 11 petrochemical projects with total investment costs of $19 billion during the period 2020 – 2035.

Minister of Petroleum and Mineral Resources Tarek El Molla has met with Spanish Ambassador to Egypt Álvaro Iranzo to discuss oil and petrochemical investment opportunities in Egypt and its role in energy security as well as the European Union’s (EU) efforts to overcome oil and gas industry challenges. During their meeting, El Molla highlighted Egypt’s intensive drilling program which seeks to accelerate new discoveries and increase production. He added that this will help support the local market and natural gas exports during the energy transition. The minister underlined the importance of the East Mediterranean region as a trusted source of natural gas, proven by the active operations of international oil companies within the area. He noted the country’s intention to link discovered fields in Cyprus to the Egyptian liquefied natural gas (LNG) plants, pointing out Egypt’s energy transition and hydrogen production efforts.

QAZAQ GEOPHYSICS IDENTIFIES MINING INVESTMENT OPPORTUNITIES IN EGYPT

Minister of Petroleum and Mineral Resources Tarek El Molla met with a delegation from Qazaq Geophysics headed by CEO Galym Nurzhanov.

During the meeting, the delegation presented the company’s technical capabilities and experiences in the mining sector.

For his part, El Molla highlighted the reforms that Egypt has implemented in the mining sector and its efforts in providing an attractive investment climate. He also pointed out that the last mining bid round succeeded in attracting major companies, giving the country the needed financial and technical momentum to make a quantum leap in the sector. The minister added that Egypt has also been open to the contributions of new expertise and investments in mining techniques, noting the second edition of the Egypt Mining Forum will take place this coming July.

ENI, OTHER COMPANIES LAUNCH “ROAD – ROME ADVANCED DISTRICT”

Eni, Acea, Autostrade per l’Italia, Bridgestone, Cisco, Gruppo FS and NextChem (MAIRE) has launched “ROAD -Rome Advanced District” project, which is a network of companies, to develop the first technological innovation district dedicated to developing new energy supply chains, applied industrial research collaborations and academic research.

SONATRACH

The impact areas of the network will include sustainable transportation, smart cities, and the promotion of health and safety, as well as technologies for decarbonization, circular economy (water and waste management), and energy efficiency and storage.

Each of the co-founders of ROAD is also actively engaged in the growth and acceleration of specific industrial supply chains, beginning with the monitoring and enhancement of road paving. They do this by fusing technologies from the transportation industry with those from chemistry and IT to suggest novel solutions.

STEP POLYMERS SPA SELECTS PETROFAC, HQC FOR $1.5B PROJECT IN ALGERIA

STEP Polymers SPA, a 100% Sonatrach subsidiary, has selected the Petrofac and Huanqiu Contracting & Engineering Corporation (HQC) joint venture (JV) to execute a significant petrochemical project in Algeria.

The $1.5 billion project will be located at the Arzew Industrial Zone, west of Algiers. The project includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities

TOTALENERGIES

and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year.

Tareq Kawash, Petrofac’s Group Chief Executive, said: “We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.”

Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, said: “The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.”

TOTALENERGIES TO START OPERATIONS FOR $27B IRAQI ENERGY PROJECT IN H2 2023

Iraq expects TotalEnergies to start operations in a long-delayed oil, gas, and renewable energy project at $27 billion, in the second half of 2023,Sky News Arabia reported.

Completed in 2021, the project was delayed amid disagreements between Iraqi politicians over the terms of the agreement.

QATARENERGY

The Undersecretary of the Ministry of Oil for Extraction Affairs, Bassem Khudair, explained that the project is waiting for the finalization of side contracts with the state oil company.

The project is awaiting the completion of side agreements with the state oil corporation,

QATARENERGY AWARDS EPC CONTRACT FOR NFS PROJECT

QatarEnergy awarded a $10 billion engineering, procurement, and construction (EPC) contract for the North Field South (NFS) project, which comprises two LNG mega trains with a capacity of 8 tons per annum (MTPA) each.

According to a company statement, the contract was signed by Saad Sherida Al-Kaabi, the Minister

PDVSA

of State for Energy Affairs, the President and CEO of QatarEnergy; Arnaud Pieton, President of Technip Energies; and Oussama El Jerbi, CCC Managing Director – Qatar.

It took place in the presence of Sheikh Khalid bin Khalifa Al Thani, the Chief Executive Officer of Qatargas, and senior executives from QatarEnergy,

according to the Undersecretary of the Ministry of Oil for Extraction Affairs, Bassem Khudair. Khudair continued saying that the contract’s activation requirements are being finalized by TotalEnergies and Basra Oil Company (BOC).

Qatargas, Technip Energies and CCC.

The North Field East (NFE) project and NFS combined will expand Qatar’s existing capacity for LNG production from 77 MTPA to 126 MTPA.

PDVSA’S NEW MANAGEMENT EXPECTS TO INCREASE OIL OUTPUT, REFINING

Venezuelan state-owned oil and natural gas company PDVSA’s new management anticipates to increase the country’s output to 1.17 million barrels per day.

Pedro Tellechea, the company’s new chief executive and a new board of directors

Aiming to cash on pending debt, optimize operations and boost production, PDVSA’s new chief executive, Pedro Tellechea, and a new board

of directors this year have examined supply agreements and partnerships.

According to Tellechea’s plan that was presented to workers, PDVSA expects to increase crude output by 390,000 barrels per day by the end of the year, boost gas to 2.27 billion cubic feet, and ramp up refining by 20% so an extra volume of 90,000 bbl/d of fuel can be sold domestically.

The Petromonagas upgrader, which has been out of commission since December due to a fire, will be restarted next month as one of the essential projects to accomplish PDVSA’s targets. This upgrader will transform around 80,000 bbl/d of extra heavy oil into exportable crude.

NIOC

IRAN, IRAQ OIL INK ENERGY COOPERATION MOU

Iran’s Oil Minister Javad Owji and his Iraqi counterpart Hayan Abdel-Ghani signed a memorandum of understanding (MoU) to cooperate in oil, gas, and petrochemical projects.

ADNOC

The MoU was signed in the presence of Mohammed Shia al-Sudani, Iraq’s prime minister, who brought forward proposals to develop joint fields, train human resources, and implement petrochemical projects.

Owji and Sudani emphasized the expansion of bilateral cooperation in the energy sector, urging the Iran-Iraq Joint Working Group to follow up on the implementation of the recent memorandum by holding regular sessions.

ADNOC, BAKER HUGHES INK STRATEGIC AGREEMENT TO ADVANCE HYDROGEN TECHNOLOGY INNOVATION

ADNOC signed a strategic technology collaboration agreement with Baker Hughes to accelerate the development and commercialization of technology solutions for green and low-carbon hydrogen, as well as graphene.

The collaboration between the two companies will allow them to study and pilot the deployment of innovative solutions from Baker Hughes’ hydrogen portfolio. These include new growth stage decarbonization technologies Baker Hughes

BP

has invested in across the graphene, methane pyrolysis and next-generation electrolysis spaces. It also builds on ADNOC’s $15 billion commitment towards decarbonization projects by 2030.

Musabbeh Al Kaabi, ADNOC Executive Director, Low Carbon Solutions and International Growth Directorate, said: “The unique properties of graphene make it a promising agent to help decarbonize a variety of hard-to-abate sectors while hydrogen can serve to accelerate

BP’S PROFITS REACH $5B IN Q1 2023, SHARES DECLINE

bp made $5 billion in profits in the first quarter of 2023 while the company’s shares fell as it slowed a share buyback program, Reuters reported.

bp’s 2023-Q1’s financial results surpassed forecasts as business benefited from energy prices.

ARAMCO

However, after bp announced it would repurchase $1.75 billion worth of shares over the next three months, down from $2.75 billion in the previous three, its shares had dropped about 4.5% by 0735 GMT, compared to a drop of about 1.2% for an index of European oil companies (.SXEP).

decarbonization as it does not generate any carbon emissions at point of use. Across ADNOC, we are proactively pursuing a strategy to accelerate the production and deployment of low-carbon and renewable hydrogen. We look forward to working in partnership with Baker Hughes, and its venture companies, as part of our continuing journey to transform, decarbonize, and future proof the way we provide energy to the world.”

First-quarter underlying replacement cost profit, the company’s definition of net income, reached $4.96 billion, up from $4.8 billion in the fourth quarter of 2022 and above expectations of $4.3 billion in a company-provided survey of analysts.

ARAMCO, BAOSTEEL, PIF INK JV TO ESTABLISH FIRST INTEGRATED STEEL PLATE MANUFACTURING COMPLEX IN SAUDI ARABIA

Aramco, Baoshan Iron & Steel Co., Ltd. (Baosteel), and the Public Investment Fund (PIF) have inked a joint venture (JV) to establish an integrated steel plate manufacturing complex in the Kingdom of Saudi Arabia.

The JV complex is expected to be located in Ras al-Khair Industrial City, one of the four new Special Economic Zones recently announced by Prince Mohammed bin Salman, Prime Minister and Chairman of the Council of Economic and Development Affairs.

Up to 1.5 million tonnes of steel plates might potentially be produced annually at the plant. A direct reduced iron (DRI) furnace powered by natural gas and an electric arc furnace, which seeks to cut CO2 emissions from the steelmaking process by up to 60% in comparison to a conventional blast furnace, would also be included. Future CO2 emissions from the DRI plant might be reduced by up to 90% without the need for significant equipment improvements because it is compatible with hydrogen.

Amin H. Nasser, Aramco President & CEO, said: “The Kingdom’s first steel plate production facility

EXXONMOBIL EXXONMOBIL ACHIEVED EARNINGS OF $11.4B IN Q1 2023

ExxonMobil reported record first-quarter earnings of $11.4 billion which is more than double compared to the same quarter a year ago.

Earnings per share (EPS) followed a similar trend increasing to $2.79 per share.

“We delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit,” Chief Financial Officer Kathryn Mikells said in an interview.

This record is a result of growing value by increasing production from our advantaged

is expected to enhance Saudi Arabia’s steel industry ecosystem and improve supply chain localization. Under Aramco’s flagship industrial investment program, Namaat, and supported by the government’s Shareek program, this joint venture is expected to create jobs and contribute to economic growth and diversification. This joint venture is also an example of bringing together expertise from other sectors. With Baosteel and PIF supporting in capacity building in the Kingdom’s industrial sector, Aramco aims to create additional value for our company and our partners.”

assets to meet global demand, according to Kathryn Mikells.

Exxon’s oil and gas net production increased by nearly 300,000 oil-equivalent barrels per day versus first-quarter 2022, excluding divestments, entitlements, and Sakhalin-1 expropriation

EGYPT'S RENEWABLES MARKET ACHIEVEMENTS AND PROSPECTS

BY JOLLY MONSEF, MARIAM AHMED & MAHA BALBAA

Egypt enjoys an abundance of renewable energy resources with high deployment potential, making Egypt a primary location for projects. These are mainly hydropower, wind, solar, and biomass. Egypt recognizes the importance of having a sustainable energy mix for addressing the increasing demand and diversification of electricity generation. The government, in collaboration with local, regional, and international institutions is making significant expansion in renewable energy production.

Egypt has promising areas with high wind speeds which are suitable for establishing large projects to generate electricity. Furthermore, it is one of the most appropriate regions for exploiting solar energy as it enjoys favourable solar radiation intensity. The Nile river is Egypt’s most important hydropower resource with the Aswan High Dam, where a series of hydropower stations are located. In this regard, this report focuses on the development of Egypt’s renewable energy market during 2021 and 2022.

RENEWABLE ENERGY MARKET

The renewable energy market in Egypt is mainly divided into hydropower, which has the largest share in total production, followed by solar, wind, and bioenergy respectively, according to IRENA 2022. Particularly, the solar energy shares in the renewable energy mix increased from 26.6% in 2021 to 27.3% in 2022 owing to the completed

Renewable Energy Mix Development

Flashbacks

Egypt is one of the first countries to use renewable energy as a vital source. The first wind farm in Egypt was established in Hurghada in 1993 with a total capacity of 5.2 MW. In the early 2000s, the New and Renewable Energy Authority (NREA) in collaboration with Denmark, German and Spanish and Japan established a series of large-scale wind farms. Since the early 1980s, solar photovoltaic (PV) systems have been applied to pumping, lighting, advertising, cold storage, and desalination, according to the International Renewable Energy Agency (IRENA).

execution of mega projects including Kuraymat Solar Thermal, Zafarana PV, as well as other PV Roof-top Net Metering. Egypt is considered one of the distinguished countries in renewable energy in both Africa and the Middle East with a share of 10.75% and 22.15% respectively in 2022, according to IRENA.

RENEWABLES PROJECTS

Annual Capacity Projects per Sector in 2022

Egypt seeks to become a global renewable energy hub by working on several projects to add to its existing solar, wind, and biomass production. The NREA and the private sector worked on implementing a group of projects in 2022, in continuation of their efforts in 2021. Reflecting the state’s resolve to turn its vision into reality, NREA is now working on implementing wind energy projects that will add 252 MW to Egypt’s renewable energy capacity.

This is in addition to the wind and solar projects under implementation that the private sector is responsible for, which will supply 3,500 MW of renewable energy. Thanks to the fact that Egypt is a solar belt area, the executed solar energy projects constitute the largest capacity share around 52% of the total capacity, while biomass energy represents the smallest share, according to the NREA.

Projects' Financial Indicators per Sector

1.9

148.6 Total Investment (EGP billion)

> $2.8 billion

REGIONAL AND INTERNATIONAL COOPERATION

Egypt has been always exploring ways of cooperation on the regional as well as international levels. Therefore, Egypt embarked on collaborating with leading organizations to enhance its progress in the energy transition including Japan International Cooperation Agency (JICA), the European Union (EU), the United Nations Development Programme (UNDP), World Bank (WB), EBRD, and Agence Française de Développement (ADF). Furthermore, Egypt’s cooperation widened to include International Renewable Energy Agency (IRENA), the League of

Egypt is blessed with a strong potential in renewable energy resources. Therefore, the state efforts to best exploit the abundant renewable resources within the framework of Egypt’s Sustainable Energy Strategy 2035 to accelerate the energy transition, and modernize the energy

Arab States (LAS), the Egyptian-German Joint Committee on Renewable Energies and Energy Efficiency (JCEE), Kreditanstalt für Wiederaufbau (KFW), the Regional Center for Renewable Energy and Energy Efficiency (RCREEE), as well as the Nile Basin. These collaborations mark a significant milestone towards promoting the renewable energy sector in Egypt.

sector. Moreover, Egypt devotes attention to developing and upgrading its energy strategy in 2035 to be up to the developments of the era in order for renewable energy resources to reach 42% of the total production of electric energy by 2035.

HELD UNDER THE PATRONAGE OF HIS EXCELLENCY ABDEL FATTAH EL SISI PRESIDENT OF THE ARAB REPUBLIC OF EGYPT

EUROPE – EGYPT ENERGY INTERCONNECTIVITY EVENT BUILDS BRIDGES OF REGIONAL COOPERATION

Manager Mattia Campanati further expressed his confidence in Egypt as a major force within the East Med market. “We are pretty sure that Egypt will maintain and proceed as a leader in the East Mediterranean area.”

❝ EGYPT HAS PROVEN TO HOLD THE KEYS TO BEING A REGIONAL ENERGY HUB WITH A STRATEGIC LOCATION, WELL-ESTABLISHED ENERGY INDUSTRY, AND RELIABLE INFRASTRUCTURE, HELPING MONETIZE ALL POTENTIALS PRESENT IN THE EAST MEDITERRANEAN REGION ❞

Coinciding with Europe Day, this engaging event tackled two main concerns that have occupied the minds of many governments and companies alike: energy security and achieving the goals of sustainability. It was an occasion that echoed the call for deeper cooperation between Europe, Egypt, and the East Mediterranean for the mutual benefit of all.

As the cradle of civilization and a country that once used to be the ancient’s world source of grain, Egypt shall become the modern world’s supplier of natural gas, especially to Europe. With European energy markets looking for stability of supply, Egypt’s richness in natural gas as well as its modernized infrastructure is just the solution that Europe needs to quench its thirst for this vital resource. Having an advantageous geographical position in East Mediterranean, Egypt has everything it needs to be a treasure trove of natural gas located at Europe’s doorstep. “Egypt has proven to hold the keys to being a regional energy hub with a strategic location, well-established energy industry, and reliable infrastructure, helping monetize all potentials present in the East Mediterranean region,” El Molla said.

Monetization is a key point that was touched on by Osama Mobarez, the Secretary General of the East Mediterranean Gas Forum. During a panel discussion moderated by Egypt Oil & Gas Founder and CEO Mohamed

Fouad, Mobarez stated that “The main objective of the establishment of the EMGF was that we saw there are a lot of resources in the East Mediterranean, a lot of discoveries, that have not been monetized due to several challenges. We have seen that we can overcome those challenges mainly through collaboration, bringing the different governments together and bringing the different stakeholders together.” Mobarez further emphasized that the EMGF’s role in bringing the region closer together is to unleash and monetize all of the potentials that it has to offer.

In the same panel discussion, EU Ambassador Christian Berger outlined the importance of collaboration to push Europe’s Green Deal forward. “We have always said we need our immediate neighbors, we need actually the entire world, I would say, to achieve the goals of the Green Deal.” He added, “We in Egypt find great partners because there is a very strong interest in Egypt itself to become a hub for renewable energy, which is a very important component of the Green Deal.”

Apart from its advantage in both resources and geographic position, Egypt has demonstrated time and again its commitment to meeting its goals. For this reason, many experts agree that Egypt will prove to be a regional leader within the East Mediterranean for the years to come. Taking an active part in the engaging discussion, IEOC General

During the event, there was also another panel discussion involving European Investment Bank (EIB) Vice President Gelsomina Vigliotti, Hitachi Energy’s Vice President Thomas Krysen, Siemens Energy Egypt’s Managing Director Layla El Hares, SCATEC’s Global Head of Green Hydrogen and Ammonia and General Manager Mohamed Amer, and Copelouzos Group’s Chief Operating Officer of the Renewable and Battery Storage Business Unit John Karydas. Policies, priorities, and financial mechanisms that will boost the energy transition and connect Europe and Egypt were the main focuses of this discussion.

❝ THE MAIN OBJECTIVE OF THE ESTABLISHMENT OF THE EMGF WAS THAT WE SAW THERE ARE A LOT OF RESOURCES IN THE EAST MEDITERRANEAN, A LOT OF DISCOVERIES, THAT HAVE NOT BEEN MONETIZED DUE TO SEVERAL CHALLENGES. WE HAVE SEEN THAT WE CAN OVERCOME THOSE CHALLENGES MAINLY THROUGH COLLABORATION, BRINGING THE DIFFERENT GOVERNMENTS TOGETHER AND BRINGING THE DIFFERENT STAKEHOLDERS TOGETHER. ❞

OSAMA MOBAREZ

The Secretary General of the East Mediterranean Gas Forum

Organized by the Swedish Embassy in Cairo, the Europe-Egypt Energy Interconnectivity event kicked off with the attendance of Tarek El Molla, Minister of Petroleum and Mineral Resources and several other notables in the government and corporate world who are involved in the energy sector.

H.E. TAREK EL MOLLA Minister of Petroleum and Mineral Resources

POSITION

Yourself as a thought leader and share your expertise to the global mining and minerals fraternity by speaking at the Egypt Mining Forum

LEARN

OIL & GAS DECARBONISATION WORKSHOP: ENGAGING THE ENERGY SECTOR TO LEAD CLIMATE ACTION IN EGYPT

emissions in his presentation titled "Methane Emissions Detection & Quantification Technologies”.

Methane emissions were also a subject that took center stage in the presentation by Pietro Mezzano and Lauren Ward from OGCI titled "OCGI Satellite Monitoring Campaign", highlighting OCGI's efforts to monitor and actively reduce methane emissions. A key highlight of the event was the various energy transition initiatives and success stories that were presented at the workshop. These presentations were delivered by Jorge Luis Becerra Barbella, Plant Operations, Asset Integrity and Energy Efficiency Manager at Eni; Mohamed Salaheldin, Quality General Manager Sidpec; Mohamed Tash, Energy Efficiency Manager at Gasco; Mahmoud Shabana, Exploration Data Project Manager at SLB; and Khaled Tawfik, Process Engineer at Cairo Oil Refining Company.

The day was concluded with an interactive breakout session where attendees, mostly industry professionals from Egypt’s oil and gas sector, were divided into three groups to generate ideas, solutions, and discuss challenges related to decarbonization and energy transition initiatives. The three teams included upstream, downstream, and non-technical enablers and the session was moderated by Nihal Abdel Karim, EOG Committee-Energy Transition Taskforce Leader and Development Engineering Manager at Eni/IEOC.

In the end, the three teams concluded the sessions by giving a presentation, each touching on a variety of different topics including financing investments, regulations, policies, capacity building, know-how and others. The ideas from all three teams will be taken and may be considered for future decarbonization projects.

Enhancing its active role in the petroleum sector, the Egypt Oil & Gas (EOG) Committee has held a valuable workshop on decarbonization under the high patronage of the Minister of Petroleum and Mineral Resources Tarek El Molla on Tuesday, May 30th at Enppi company’s headquarters.

The workshop started with a remarkable speech made by Alaa Hagar, Undersecretary of the Minister’s Technical Office at the Ministry of Petroleum and Mineral Resources and David Chi, EOG Committee Chairman as well as Vice President and Country Manager of Apache.

Hagar started his speech by thanking the EOG Committee for organizing this event, noting the crucial role of the committee within the oil and gas industry. “The Egypt Oil & Gas Committee continues to provide an effective platform for dialogue and cooperation between the sector’s companies and the international energy companies with the aim of continuously improving the sector’s performance,” Hagar said.

Hagar highlighted the importance of decarbonization to the Ministry of Petroleum and Mineral Resources. “Decarbonization and energy transition are integrated as the core aspects within the Ministry of Petroleum and Mineral Resources’ strategic pillars. In addition, since the oil and gas companies are usually perceived to be part of the climate change challenge, the minister envisioned that they should be engaged to be part of its solution.”

For his part, Chi praised the role of the Minister of Petroleum and Mineral Resources in COP27 in ensuring that the oil and gas sector becomes a major contributor to decarbonization. "His Excellency Minister of Petroleum and Mineral Resources Tarek El Molla was the first one to push for the oil and gas sector to actually have a seat at the table in COP discussions," Chi explained. "I think we should all be very proud of working in the Egyptian oil and gas sector. I think we are one of the [few] oil and gas sectors around the world that is really working closely together."

The workshop involved a series of informative technical sessions providing the attendees with the latest approaches and technologies being followed up to decarbonize the vital sector. The first session was introduced by Concetto Fischetti, Transition Director at the International Association of Oil & Gas Producers IOGP titled “Priorities for Energy Transitions.” His presentation touched on the energy trilemma and the energy sector's roadmap and efforts to realize net zero goals supported by his company.

Kevin Spencer, Carbon Capture Storage (CCS) Manager at IOGP, provided the second session. It involved two presentations titled "CCSHubs, Concepts & Business Models" and “CCSMeasurement, Monitoring and Verification Recommended Practice.” These presentations offered an in-depth look at the time importance of CCS, its challenges, as well as the latest methods for measuring and monitoring CCS. These presentations also touched on the verification plan for the geological storage of CO2.

With flare gas recovery being a widely used method for reducing emissions, “Flare & VentingFlare Gas Recovery System" was presented virtually by Alexandre Fernandes Mark de Kuijer from Petrobras/Shell provided industry professionals with the latest guidelines for the design and operation of flare gas recovery systems for decarbonization.

Shifting the workshop’s focus to electrification, Shell UK's Lead in Grid Connection Technology Paul Donnellan delivered an additional presentation titled “Recommended Practice for Electrification of Oil and Gas Facilities” during which he outlined that standardization and collaboration as vital ways to make progress in a lower carbon agenda He also offered a detailed explanation of recommended practices for electrification and technology development.

With methane becoming a concern around the world for emission reduction efforts, David Newman, bp Senior Advisor, Measurement, Analyzer Systems, outlined methods and technologies used to measure, monitor, and thereby limit methane

❝ THE EGYPT OIL & GAS COMMITTEE CONTINUES TO PROVIDE AN EFFECTIVE PLATFORM FOR DIALOGUE AND COOPERATION BETWEEN THE SECTOR’S COMPANIES AND THE INTERNATIONAL ENERGY COMPANIES WITH THE AIM OF CONTINUOUSLY IMPROVING THE SECTOR’S PERFORMANCE, ❞

Undersecretary of the Minister’s Technical Office at the Ministry of Petroleum and Mineral Resources

❝ I THINK WE SHOULD ALL BE VERY PROUD OF WORKING IN THE EGYPTIAN OIL AND GAS SECTOR. I THINK WE ARE ONE OF THE [FEW] OIL AND GAS SECTORS AROUND THE WORLD THAT IS REALLY WORKING CLOSELY TOGETHER. ❞

EOG Committee Chairman and Vice President and Country Manager of Apache.

DAVID CHI

ALAA HAGAR

WORLD NATURAL GAS: THE CONVENIENT, TIMELY FOSSIL FUEL

BY SARAH SAMIR

As Egypt moves towards a greener future, the country looks at natural gas as a convenient green energy source at the time being. Natural gas is not only a cheaper source of energy, but it is also one of the main types of fossil fuels with less carbon emissions. Therefore, the Egyptian government is working on encouraging the use of natural gas, while rationalizing energy consumption to provide the European Union (EU) with natural gas as well.

Natural Gas: Clean, Cost-Efficient Energy Source

Natural gas is a cleaner energy source, that costs less compared to other sources of energy, thanks to Egypt’s growing production. In the past years, Egypt has been having a surplus in its natural gas production. In fact, Egypt produced 4.1173 million tons of natural gas in January 2023, according to Central Agency for Public Mobilization and Statistics (CAPMAS)’ March monthly bulletin. Therefore, using natural gas as a source of energy is more cost-efficient compared to other imported fossil fuels.

Moreover, natural gas produces less pollutants and carbon dioxide (CO2) compared to coal and oil. "About 117 pounds of CO2 are produced per million British thermal units (MMBtu) equivalent of natural gas compared with more than 200 pounds of CO2 per MMBtu of coal and more than 160 pounds per MMBtu of distillate fuel oil," according to the US Energy Information Administration. Although renewable energy is cleaner, it is hugely expensive, and the country is not financially ready to totally shift to renewables yet. Therefore, natural gas is considered to be a transitional fuel needed for the time being.

Promoting Natural gas as a Fuel

Egypt has been encouraging the use of natural gas as a fuel instead of other fossil fuels. The country successfully delivered natural gas to 14 million households over 42 years, of which it was delivered to 7.6 million households during the period from June 2014 to November 2022, according to the Ministry of Petroleum and Mineral Resources (MoPMR)’s achievements report. The Ministry of Finance announced in May that EGP 3.5 billion to

be allocated for delivering natural gas to Egyptian households in its FY 2023/24 budget.

Moreover, 50,000 vehicles were converted to run with dual engine during the time between July 2022 to March 2023, which brings the total number of converted vehicles to 500,000 since the start of the project. This is according to the report received by the Minister of Petroleum and Mineral Resources, Tarek El Molla, in April, on the natural gas utilization expansion project for the fiscal year (FY) 2022/23. The report also mentioned that 61 new natural gas filling stations were established during the same period, boosting the total number of stations to 688 operated ones.

Rationalization to Boost Exports

The Egyptian government is calling for the rationalization of natural gas consumption as it works on supporting the European Union (EU) with its liquified natural gas (LNG) needs. Accordingly, Egypt is taking several steps to rationalize consumption, including activating the daylight-saving time in order to decrease the usage of electricity as it is believed to save electricity used in lights and air conditioners. Accordingly, the country's natural gas consumption decreased by 4.27% in January 2023, reaching 3.7105 million tons, compared to 3.876 million tons used in January 2022, according to CAPMAS. Egypt successfully exported natural gas and LNG worth $7.8 billion during the first ten months of 2022, according to MoPMR’s achievements report.

During the months from January to April 2023, Egypt successfully exported 2.5 million tons of liquified natural gas

(LNG) a source in the petroleum sector told AlAhram Gate. Egypt's LNG exports in Q1 2023 were about 1.90 million tons. According to preliminary estimates, the two liquefied gas stations in Damietta and Idku exported around 1.44 million tons to European markets, the European Union (EU); Turkey; and Britain, equivalent to about 76% of Egypt's total LNG exports during the quarter, Al Ahram reported.

Emissions Reduction

As the world faces climate change, Egypt is keen to decrease emissions to contribute to climate action. “Egypt committed to reduce emissions by 33% in the electricity sector (70 Mt CO2e), 65% in the oil and gas sector (1.7 Mt CO2e), and 7% in the transportation sector (9 Mt CO2e) by 2030 compared to business-as-usual, conditional on external support,” according to United Nations Development Programme (UNDP).

Therefore, MoPMR is prioritizing projects that preserve the environment and reduce emissions as it seeks to boost energy efficiency. El Molla highlighted, in April 2023, Egypt’s achievement of EGP 2.8 billion in annual savings using recovered flare gases in operations as an alternative to diesel. The Zero Flare gas recovery projects that were implemented included twelve projects in companies, namely: Agiba, Khalda, Petrobel, Petrosannan, Bapetco, ZETCO, Borg El-Arab Petroleum, Norpetco, Gemsa Petroleum, Petroshahd, CORC, and Petrosilah, according to a report received by the minister.

As the government promotes the usage of natural gas and encourages gas flare recovery, the country will surely reduce emissions and preserve the environment. Natural gas is not only environmentally friendly, but it is a more economically feasible fossil fuel that is convenient in aiding energy transition for the time being.

Under The Patronage of H.H. Sheikh Mohamed Bin Zayed Al Nahyan, President Of The United Arab Emirates

Helping companies navigate the route to decarbonisation

With a special focus on CCUS, hydrogen, reducing methane emissions and new technologies, the Decarbonisation Zone showcases the gamechanging partnerships, strategies and innovations helping the industry to decarbonise quicker, and create the energy system of the future, faster.

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THE ROAD TO ENERGY SECURITY

BY RANA AL KADY

To begin with, the market of natural gas is currently undergoing significant change, shifting from regional cooperation to an increasingly international and interconnected economy. Given the ongoing condition of surplus in the gas market, this change is causing new security-related worries, which are still present. Natural gas plays a significant role in the transition to cleaner energy because of the amalgamation of two main factors—a decrease in greenhouse gas (GHG) pollution and increased energy security.

General Overview

Firstly, considering natural gas is mostly transported via pipelines, as opposed to crude oil, which has become more interconnected and often trades at one rate globally, the outcome is a largely dispersed global market. The natural gas market is so fragmented that in addition to regional pricing differences, high costs in a particular area of the globe may not always be passed on to customers in different parts of the world. As suggested by a Natural Gas Operations Manager, “Egypt has the [ability] to lead the countries nearby and act as a leader on the way to making Egypt transition to natural gas in different sectors (like transportation or oil and gas) and at the same time, securing energy on a national level”.

Energy security includes ensuring an economical energy supply in addition to maintaining the constant availability of electricity. As a matter of fact, energy security is a subject of ongoing relevance, and because of the worldwide shortage of energy brought on by the Russian attack on Ukraine, the issue is presently at the forefront of the list of priorities. Energy price increases have reached levels that have significantly worsened the prospect for the world economy, made things tough for both industry professionals and businesses, and forced numerous authorities to re-evaluate their framework setup and goals.

The Pressures of Energy Security

Nations are under stress due to a shortage of local energy supply as well as cultural concerns connected to the environment to resist the temptation of readily available resources like coal, especially in the near future. Germany is an ideal case study. In fact, Germany is interested in discontinuing coal as a source of energy but sees a desire to slow down the switch to natural gas due to worries regarding cost as well as security. Germany might decide to speed up its drive in the direction of wind and solar meanwhile promoting consumer shift in the direction of energy conservation to address this issue. Additionally, it might adopt a dramatic plan for

effective construction that would enhance the way buildings and companies utilize energy.

The urgent need for fossil fuels in nations, along with their financial capabilities to meet that need, attracts supply from alternate markets and places them in a difficult position, both inside and outside of their own perimeters. This conundrum is evident in the construction of new LNG import facilities in nations that try to transition away from petroleum and coal. In nations that have just begun to import LNG or that are looking to increase their current import ability, the competition for supplies drives up costs and weakens the economic rationale for LNG.

Furthermore, the local extraction of oil and gas is prioritized in the United States. One indication of this trend is an increase in US rig numbers. If additional supplies can be provided at volume in a period of two to three years, US shale gas that comes in the form of LNG unexpectedly proves to be highly appealing to consumers. As a novel environmentally friendly energy system develops, the quick reaction enables US LNG to be sold as a solution to problems related to the security of the supply of energy. However, there are obstacles to future drilling, since both funding organizations and those opposed to climate change have issued warnings. One solution, especially in the US because the physical structure is established and the technological ability is there, is the implementation of the capture and storage of carbon.

Additionally, the need for natural gas as a form of power rises in the decade of 2020 and then starts to fall. But business demand for natural gas is still rising. This is partly caused by an increase in the processing of mineral substances, which is necessary for the development of energy sources that are renewable.

In conclusion, the adoption of low-carbon technology is significantly increased by the need for energy security. However international rivalry generates a number of low-carbon technological competitions. Various nations compete for reliable energy sources and

concentrate on constructing energy resiliency to survive unforeseen events, instead of collaborating to rescue the earth. Thus, the transition through natural gas can be enhanced by ensuring that nations cooperate with one another to strive for a cleaner and better future.

The market of natural gas is currently undergoing significant change, shifting from regional cooperation to an increasingly international and interconnected economy.

Nations are under stress due to a shortage of local energy supply as well as cultural concerns connected to the environment to resist the temptation of readily available resources like coal, especially in the near future.

ULTRASONIC INSPECTION: A WAY FOR MORE EFFICIENT NATURAL GAS OPERATIONS

BY FATMA AHMED

Natural gas has proven to be the cleanest fossil fuel and the primary source of power for renewable energy. With that, improving production and transportation techniques are becoming more crucial than ever to cover the fast-growing demand. Guaranteeing pipelines’ safety and enhancing their operation process became an important aspect to guarantee efficient and safe transportation of this essential fuel. Ultrasonic Testing (UT) is not a new solution, but it remains the most common, successful, and effective technique in this regard.

How it Works

According an article published by Flyability, ultrasonic testing is one of the non-destructive testing solutions used by inspectors to identify if there is any flaw or defect that may occur in a material and to determine its thickness. This technique is working by sending ultrasonic waves through an object or material. The article mentioned that ultrasonic testing is also called Ultrasonic Thickness Measurement (UTM), Ultrasonic Thickness Testing (UTT), or Sonic Testing (ST). This method is usually used on metals, as metals can make sound waves, which helps in the measurement process. So, that it is an optimum method for pipeline inspection.

There are three primary methods for UT. It could be done through transmission in which two transducers are put in opposite sides of the object. When there is an error, the signal amplitude is reduced or may be totally lost in case of gross defects.

Pulse Echo is another method for UT and is more sensitive than the transmission method. Thus, Pulse Echo is the most used in event of inspections. In this method, the two transducers are placed in the same side of the object. When a defect occurs, an echo takes place before that of the back wall echo.

The third method is known as the Resonance method, which is similar to the pulse echo method. The only difference is that it allows changing the regularity of the transmission and it is commonly used when only one terminal of the object is accessible.

Innovative Types

The latest inventions of the UT include seven types, according to Modsonic. The automated Ultrasonic Backscatter Technique is applied to detect “damage due to HighTemperature Hydrogen Attack (HTHA). This technique specifically is used in piping and pressure vessels.” It can provide an A-Scan display with frequency analysis.

The second type of UT is Phased Array Ultrasonic Testing (PAUT). This technique consists of probes with several small-sized elements ranging from 16 to more than 250 at a time. “These elements can pulse individually in PAUT equipment. This is achieved through computer-calculated timing, which is called phasing,” according to Modsonic article.

Furthermore, the third technique is Long Range Ultrasonic Testing, which is used for “testing large amounts of materials from a singular testing point. This takes place by putting transducer rings around a pipe in a uniform manner. The rings emit a series of lowfrequency guided ultrasonic waves”.

Internal Rotating Inspection System is another technique used to inspect any corrosion in pipes and tubes by inserting an inspector inside them, which sends ultrasonic waves. Moreover, Dry-Coupled Ultrasonic Testing (DCUT) is a cheap technique for detecting metallic and nonmetallic objects. Also, there is a technique called Time of Flight Diffraction (TOFD), which is used to inspect welds.

The seventh technique is the Rapid Ultrasonic Gridding (RUG) method, which is used to measure thickness through ultrasonic waves. This technique can “capture multiple A-Scan data points more quickly than other traditional thickness measuring methods.”

UT Usages in Oil & Gas

UT has a crucial role in the oil and gas industry. It is beneficial within all phases, starting from upstream to downstream activities, especially in pipeline inspection to keep the safety of the operations and help in meeting the growing demands. The most common methods used in the oil and gas industry are PAUT and TOFD.

According to Zetec, UT is used in “inspecting important assets before they are put on a production line like riser welds, the quality of corrosion resistant alloys (CRAs), and the long stretches of generic welds on drilling pipes.” UT technology can perform accurate detection at high speeds, which enables technicians to keep up with the large volume of generic welds before and during service.

Also, it allows inspectors to detect corrosion in the cladding that protects the pipeline, the welds on storage tanks, and the integrity of each pipe before it is put on stream, which enables oil and gas companies to operate without worrying about serious spills or breakdowns. Hence, UT is an enabler for more technologies’ utilization and expansion in the fields, as well as enhancing safety, increasing efficiency, and reducing costs.

Ultrasonic Testing (UT) is not a new solution, but it remains the most common, successful, and effective technique in this regard.

NATURAL GAS: AN ECONOMIC ANTIDOTE FOR THE ENERGY TRANSITION’S COST CRISIS

BY NADER RAMADAN

The expression “money makes the world go round” could not be more accurate than it is now. With global efforts to push the energy transition forward, it’s more like money will determine humanity’s continued survival and whether global temperatures will be kept from going any higher than they already are. The transition of the global energy sector from an industry that completely relies on fossil fuels to one that works with an energy mix that emphasizes renewable resources is daunting. A lack of finances to fully realize the transition further exacerbates the dilemma, where experts have to tackle conflicting interests between energy needs and rising emissions. Natural gas is not only a practical low-carbon solution but a key financial and economic enabler that can provide the fiscal momentum to propel the energy transition forward while even cutting the costs of producing some renewables as well.

The first factor to take into consideration is the financial and economic might of the natural gas industry itself is large to ignore in the energy transition process. One study from McKinsey & Company titled “How Oil and Gas Companies Can Be Successful in Renewable Power” indicates that many of these companies are “…well positioned to become leaders in the energy transition. This is not only because of their global scale, the risk appetite of their investors, their large balance sheet and cash positions, and their long-standing relationships with energy customers and stakeholders, but also because of their unique capabilities related to offshore projects and hydrogen and sustainable-fuel production and transport.” Companies specifically involved with the production of natural gas not only offer a low-carbon alternative but additional investments to promote other renewable industries, such as green hydrogen and green ammonia.

Economic growth within the natural gas sector trickles down to stimulate the renewable energies industry as long as there is a setup and economic strategy for both markets to work together in symbiosis. This was further demonstrated by a study by Elena Verdolini, Francesco Vona, and David Popp titled “Bridging the Gap: Do Fast Reacting Technologies Facilitate Renewable Energy Diffusion?” from the National Bureau of Economic Research. It showed that “a 1% increase in the share of fast-reacting fossil generation capacity may have contributed to a 0.88% growth in renewables in the long run. These results are

robust to various modifications in our empirical strategy, and most notably to the use of system-GMM techniques to account for the interdependence of renewable and fastreacting fossil investment decisions.”

On a more technical level, some studies have shown that using natural gas as part of a mix to produce more environmentally friendly fuels could actually reduce the costs of the production process. From the journal Green Chemistry, one study titled “Economic and Environmental Potentials for Natural Gas to Enhance Biomass-to-Liquid Fuels Technologies” indicated “that different blending ratios of natural gas/biomass have a large effect on the economic and environmental performance of the GBtL fuels. Co-processing NG enables the economic feasibility of converting biomass to liquid fuel but at the expense of environmental sustainability. This study determined that the maximum amount of NG that can be blended with biomass would be 28% to meet the Renewable Fuel Standard (RFS) GHG emission targets for advanced fuels, with a resulting minimum fuel selling price (MFSP) of $2.75 per gallon gasoline equivalent (GGE).”

The same study added, “…..renewable liquid fuel could be cost competitive with fossilderived liquid fuel if further improvements and optimizations could be made to blending ratios of NG, optimization of heat integration of the process, and reduction of excess hydrogen and excess electricity production.”

Despite the financial challenges that the energy transition may present, this is a step that humanity must take in order to meet the objectives of The Paris Agreement while ensuring sustainable economic growth. Natural gas is the remedy that will cure the world’s energy deficiencies while the global community awaits the introduction of renewables. It has not only proven itself as a low-carbon, efficient fueling alternative but as a lucrative opportunity to ensure that effectively executing the energy transition does not necessarily entail economic suicide. As highlighted by both Egyptian officials and notable experts from around the world, natural gas is the cash crop needed to pump all the necessary monetary resources to ensure a smooth transition and this is proven even on a scientific level. Drastic circumstances call for practical solutions and at this juncture, the global community is in need of more pragmatism than ever before.

Economic growth within the natural gas sector trickles down to stimulate the renewable energies industry as long as there is a setup and economic strategy for both markets to work together in symbiosis.

THE MENA REGION’S RENAISSANCE IN ADVANCED ENERGY TECHNOLOGY TAKES CENTER STAGE

Egypt offers a politically stable and business-friendly environment, while promoting employment and wealth creation opportunities for its population of 103 million, as the government drives its Egypt Vision 2030 forward. According to the IMF, the economy is projected to grow from $364 billion in 2021 to $585 billion in 2026. Much of this expansion will be driven by the country’s dynamic ICT, construction, real estate, retail and financial services industries. Scaling up investment in manufacturing remains a policy priority as the country shifts towards more technology-intensive manufacturing segments with high value added. Oxford Business Group’s Egypt 2022 Economic Report references the Suez Canal Economic Zone project which is designed to encourage regional and international investment in a range of industry clusters within close proximity to one of the world’s most important trade routes.

Egypt and the MENA region are expected to be a leading “gateway” in the role out of the African Continental Free Trade Agreement (AfCFTA). AfCFTA is one the flagship aspects of “Agenda 63” of the African Union, with the creation of one African market. By eliminating trade barriers in Africa, the objective of AfCFTA is to significantly boost intra-African trade, particularly trade in value added production and trade across all sectors of Africa’s economy.

Helal & Fraser International law office, established by Egyptian corporate/ commercial lawyer Hader Helal and Scottish corporate/energy lawyer Hugh Fraser, believes that the Mediterranean and North Africa region offers significant opportunities in energy. The Energy Industries Council is tracking over $60 billion of energy sector projects in Egypt alone.

COP27 held in Sharm El Sheikh in Egypt in November 2022 recognized the region’s growing importance as a growing energy exporter, driving increasing government and private sector revenues for North Africa and enhanced energy security for Europe. This will drive domestic and foreign investment and herald a new era in cross-Mediterranean trade and cooperation for years to come. The East Mediterranean Gas Forum based in Cairo brings together Egypt, Cyprus, Israel, Palestine, Jordan, Greece and France to cooperate on developing an infrastructure for gas trade within the region and with external markets.

Egypt has emerged as a world-class gas exploration, production and distribution hub, driven by massive investments worth $75 billion in the five years up to 2020 in the Mediterranean and West Nile Delta led by bp and Eni. The Gulf of Suez and the Red Sea are now also significant areas of investments in offshore gas exploration and production projects, attracting a wide variety of international E&P companies and regional players.

Egypt retains a vibrant onshore and shallow water petroleum sector, dominated by entrepreneurial independent exploration and development companies. Unlike neighboring territories dominated by single NOC markets, Egypt’s sector sees regular deal activity involving petroleum assets. The recent 8th Oil and Gas Convention held in November 2022 in Cairo tracked the status and future of the sector, with decarbonization and digitalization being key themes. EGYPS 2023, being held in February 2023, is now one of the world’s leading energy conferences.

The region is playing a major role in the energy transition with major onshore and offshore renewables developments underway or planned. The Green Corridor Initiative in Egypt is driving the country’s energy transition with major hydropower, solar, wind, hydrogen and nuclear projects completed, under development or planned.

The International Renewable Energy Agency (IRENA) projects that over 50% of Egypt’s power generation will come from renewable sources by 2030.

Egypt has emerged as a world-class gas exploration, production and distribution hub, driven by massive investments worth $75 billion in the five years up to 2020 in the Mediterranean and West Nile Delta led by bp and Eni.

These opportunities will be driven by investment in energy technology. The month of May showcased a range of leading-edge energy technologies across the Mediterranean/North Africa and the wider MENA region as the scramble continues to overcome energy transition, energy security and energy affordability challenges, especially in Europe. Kicking off with EGYPS 2023, MEOS 2023, Middle East Energy 2023, GOTECH 2023 and MENA Green Hydrogen 2003 in February/March, the postRamadan/Easter period has moved forward in April/May with a massive range of energy technology and knowhow on show at WindEurope 2023, the World Utilities Congress 2023, OWI MENA 2023, Subsea Technology East Mediterranean 2003, and SPE IADC MENA Drilling 2023.

Helal & Fraser International has been represented at all these key energy technology events. Based in Cairo, our focus is to support technology-focused joint ventures in the Mediterranean/North Africa region and play our role in supporting Egypt and the region’s progress.

Egypt Office: Office 3B, First Floor, Building B5, Mivida Business Park, New Cairo, Cairo, Egypt, +20120 7777135

United Kingdom Representative Office: Level 1, Devonshire House, One Mayfair Place, London W1J 8AJ, United Kingdom, +44 (0)1224 766650

Contact us by e-mail: sally.reeves@helal-fraser.com

Website: www.helal-fraser.com/

Egypt offers a politically stable and businessfriendly environment, while promoting employment and wealth creation opportunities for its population of 103 million, as the government drives its Egypt Vision 2030 forward.

SUDAN FACES PERFECT STORM OF CONFLICT AND WOES

BY IHAB SHAARAWY

Fierce fighting across Sudan has left millions of Sudanese citizens without access to necessary humanitarian aid and hardly any hopes for a peaceful transition to civilian rule. While forces loyal to two rival generals are vying for control, civilians who are still alive are enduring desperate shortages of food and basic supplies. They have to run for their lives amid power blackouts, a lack of cash, communications outages, and runaway inflation.

The clashes between the Sudanese Army and the Rapid Support Forces (RSF) erupted in midApril resulting in the killing of hundreds and the displacement of millions of people. Different attempts to establish a ceasefire failed to curtail hostilities with growing threats that the conflict is not only turning into an all-out civil war but also raising fears about repercussions on neighboring regions and the economics and security of the rest of the world.

The precise cost of the Sudan conflict is difficult to quantify. However, it is clear that it has had a profound impact not only on the country's development but also on regional and international geopolitics.

A Conflict with Deep Roots

Despite being one of the poorest and least developed countries in the world, Sudan has significant geopolitical importance due to its strategic location, natural resources, and historical influence on the African continent.

It lies at the crossroads of Sub-Saharan Africa and the Middle East, overlooking the Red Sea. Sudan also has a Sahelian belt with a desert in the far north, fertile land in the Nile valleys, and the Gezira region, with land used for farming and livestock across the rest of the country.

It has a wealth of valuable resources including oil, natural gas, gold, copper, and iron ore. These resources should have made Sudan an important player in the global economy, attracting foreign investment and fueling economic growth. However, race to control these resources has also led to conflicts and power struggles within the country with different ethnicities and tribes.

For most of its independent history, the country has faced substantial internal conflict that has curbed its ability to play its deserved role in the region. This includes two of the longest-lasting civil wars on the African continent. Under the terms of the Comprehensive Peace Agreement in 2005, South Sudan seceded from Sudan in 2011 and became the 54th independent state of Africa. The Sudanese army and the RSF have been at odds with each other in recent years. The RSF, a paramilitary unit that originated from the Janjaweed militia, has been accused of committing human rights abuses and atrocities in the Darfur region of Sudan in the early 2000s. However, the RSF has gained more power and influence in Sudan under former President Omar al-Bashir, who was overthrown by a military coup in 2019.

After the overthrow of al-Bashir, Sudan’s military ruler and head of the army Abdel Fattah al-Burhan, and General Mohamed Hamdan Dagalo (widely known as Hemedti), the country’s deputy and head of the Rapid Support Forces (RSF) paramilitary group were allies. They first worked together to topple alBashir in 2019 and played a pivotal role in the military coup in 2021.

However, tensions arose during negotiations to integrate the RSF into the country’s military as part of plans to restore civilian rule. The situation developed into an all-out confrontation in Khartoum streets in midApril. Despite reaching different agreements for humanitarian ceasefires, any of them succeed to stop fighting, with the two parties trading accusations about violations of ceasefires and attacks against civilian targets.

Dire Humanitarian Situation

According to United Nations’ estimates, at least one million people might flee Sudan by October. It also warned that the conflict in Sudan risks increasing people trafficking and spreading weapons across a fragile region.

More than 350,000 people have already fled across Sudan's borders with most heading to Egypt, Chad and South Sudan, while more than 1 million have been displaced within Sudan, which has a population of 49 million.

Several UN experts expressed their fears that the collapse of law and order in Sudan when millions of people desperate to move on would provide fertile ground for human trafficking, while arms circulating across borders could engender more violence. Such fears seem to be credible taking in account that some countries bordering Sudan include South Sudan, Central African Republic, Ethiopia, and Libya; all affected by their own recent conflicts and suffer some kind of instability.

The flow of Sudanese refugees also represents an economic burden for some other countries which already suffer economic problems. Egypt, for example, received 160,000 people from Sudan since the beginning of the conflict to join a large Sudanese community of nearly 5 million who resided in Egypt even before the recent conflict.

The economic impact of this conflict is not only about the cost of humanitarian aid and refugees flow, as the impact is poised to represent another pressure on trade chains and several international markets.

Sudanese Domino Effect

As the conflict continues in Sudan, many experts expressed their fears that what happens in Sudan would not probably stay in Sudan.

Conflict in Sudan threatens the country’s fast-growing agriculture sector as well as its natural resources –including oil, gold, and gum arabic.

Fizzy drinks, candy, and cosmetics manufacturers are increasingly worried as the world’s largest producer of gum arabic, is suffering tensions that can deprive the world of 70% of the production of this essential and uncompensated raw material.

The ongoing fighting is not only leading the country to economic collapse but also could disrupt the global supply chain. Following the war in Ukraine, Sudan stood as one of the potential grain producers that can compensate for part of the Ukrainian and Russian production. However, the new conflict has nipped these potentials in the bud.

The ongoing conflict can also cover operations by some parties to drain Sudan of huge reserves of gold. The country is also rich in natural gas, silver, chromite, manganese, gypsum, mica, zinc, iron, lead, uranium, copper, kaolin, cobalt, granite, nickel, tin, and aluminum, which can offer significant economic value for world markets.

Concerns are also rising over oil production and exports in Sudan and its bigger-producing southern neighbor. Although Sudan's production stands at only 60,000 b/d, fighting in Khartoum could disrupt 170,000 b/d coming from South Sudan which relies on Sudan to export its crude, which travels through a pipeline to the Red Sea via Khartoum.

Continued fighting will certainly lead to further regional instability, rolling back democratic gains, endangering large swathes of Africa, and imposing more pressure on the world economy.

As the two parties in Sudan have thousands of people to fight, fortunes to drain and international bakers to support, Sudan is facing a perfect storm that can push it into a prolonged conflict with no imminent end in sight.

WHEN TALKING ABOUT SUSTAINABLE DEVELOPMENT GOALS, SDG 17 SAYS IT ALL!

We must focus on sustainable development goals (SDGs) not only for achieving national and global goals for the 2030 agenda but also because these goals are very important for human beings. When SDGs were first introduced and adopted by all United Nations Member States in 2015, they were appropriately developed to cover all the concerns of people to have a better life, securing peace and prosperity for people and the planet. However, unexpected and unprecedented circumstances have been experienced by the world so everyone became confused about how these SDGs and corresponding targets could be achieved. Many efforts have been exerted to ensure the possibility of achieving these goals despite all that happened due to the pandemic and the current war between Russia and Ukraine. Many initiatives are being implemented, while others are being in place.

If I were to be asked which SDG is the most important from a business point of view, my direct answer would be SDG-8 and SDG-17, regardless of the expected arguments that could be raised by environmentalists as I consider myself a realistic environmentalist.

In these few words, let’s focus on SDG 17 considering that it says it all.

SDG 17 is “partnerships for the goals,” I claim to support the fact that all organizations, regardless of their size or nature, have to find more opportunities for partnership to unite the world to be able to face the current challenges.

Partnership and inclusion are much better than exclusion based on any specific perspective and it is the time to avoid any extreme opinions, such as considering the oil and gas industry as the enemy of climate action. Those environmentalists who support the noneasily achievable concept of defossilization should rather support the achievable objective of decarbonization, where the oil and gas industry could play a significant role in reducing greenhouse gas emissions. Hence, I strongly support the idea that better beats the best where improvement and optimization are the only way to achieve any goal ever.

During COP27, the Egyptian Ministry of Petroleum and Mineral Resources demonstrated its commitment to climate action by sponsoring Decarbonization Day, as one of the thematic days, where many success stories for climate action measures and initiatives in the petroleum sector were introduced. The oil and gas sector in Egypt and all over the world have many plans to incorporate renewable energy into the existing industrial processes. What had been achieved in COP 27 will last for all the next COPs and Oil and Gas companies or let’s rename them as energy companies will not be excluded or disregarded anymore.

One good example of partnership is what was introduced in the collaboration between the United Nations for Industrial Development Organization (UNIDO) and the Egyptian Petrochemical Holding Company (ECHEM) to build a peer-topeer network (P2P) in the petrochemical industry, where Sidi Kerir Petrochemicals Co. (Sidpec) led this P2P to transfer knowledge and expertise in energy management systems (EnMS), energy efficiency optimization, and solar heating for industrial processes (SHIP) to its peers in petrochemical companies to disseminate the concept of decarbonization and demonstrate the commitment of petrochemical sector towards climate action.

Mohamed Salaheldin

Energy Expert Sidpec - Quality, Energy & Excellence General Manager

BED 1-7 FIRST SLICKWATER FRACTURING IN EGYPT

Being a promising technology with huge potential, slickwater fracturing is a new approach that has proven to be less costly, more environmentally friendly, and more effective than many other types of hydraulic fracturing. It uses water as the primary fracturing fluid and has gained prominence as an innovative oil and gas extraction method, particularly for tight formations, such as shales.

Egypt’s first slickwater fracturing job was performed lately to produce a 23 API oil. This is from the known unconventional Abu Roash F reservoir by TAG OIL Egypt on their first well BED 1-7.

A slickwater fracturing mixing and pumping program involves a set of procedures to mix and pump slickwater into a wellbore to create fractures in the surrounding rock. This usually involves the following steps:

☑ Water preparation: Water used for slickwater fracturing is purified using chemicals to remove contaminants and impurities to improve its flow properties.

☑ Chemical addition: Minute amounts of chemicals are added to the water to enhance its flow properties and prevent corrosion. The type and amount of chemicals that are to be added depends on the specific wellbore and formation.

☑ Sand addition: This also involves adding sand to the slickwater to prop open the fractures within the rock. The amount of sand added will vary and should be based on the specific wellbore and formation.

☑ Pumping: This step involves pumping slickwater into the wellbore at high pressure. The extremely high pressure of the slickwater will force the water to break through the rock and form significant fractures. Sand will then be pumped into these fractures to prop them open.

☑ Fracturing monitoring: Personnel should closely monitor the fracturing process to make sure the fractures are formed as planned. This step in the process is completed using a number of different tools, including acoustic sensors and pressure gauges.

Careful planning and execution of slickwater fracturing are needed for the best results in this complex process. Having a comprehensive and detailed understanding of the specific wellbore and formation is really essential for this approach to be a success.

Overall, slickwater fracturing is less costly, more eco-friendly than other types of hydraulic fracturing, and has successfully proven its effectiveness as an oil and gas extraction method, particularly for unconventional reservoirs.

Nonetheless, it should be noted that slickwater fracturing can cause water contamination and earthquakes. It can also use a large supply of water as well.

There are a number of best practices that should be used when designing and executing a slickwater fracturing mixing and pumping program, which include the use of the latest technology and equipment, hiring the most experienced personnel available, strictly following all safety regulations, and closely monitoring the fracturing process.

Hassan Salem

Reservoir Studies, The Egyptian General Petroleum Corporation

VALUE AND VOLUME OF SHARES TRADED FOR ENERGY & SUPPORT SERVICES SECTOR IN APRIL 2023

PERFORMANCE OF PETROLEUM COMPANIES IN THE EGYPTIAN EXCHANGE IN APRIL 2023

Source of Raw Data: CBE, CAPMAS, Egyptian Exchange, PMI by S&P Global

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