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