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April 2010
www.egyptoil-gas.com
Issue 40
Pa g e 2 4
Financial Institutes for the rescue Though the financial institutes have been a steady form of support, the world economic crisis has cast its shadow over the Egyptian oil sector
All lies in the infrastructure Part IV
Last month’s article shed lights on the gas pipeline network in Egypt and the expansion potentials and future plans. Similarly, liquid pipeline network is no less important than the gas one. Although the existing liquid pipeline transmission system satisfies the needed demand, as it covers various areas in the coun8 try, yet there is a number of obstacles that would setback its potential.
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Funding Egypt’s oil projects 2010 has seen an increased focus on revising banking and financial policies for Egypt’s current oil and gas projects. In the midst of reforms, budget adjustments and pending projects for the quarter, some key developments are underway to bolster the country’s oil and gas fueled economy.
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Oil exploration costs on the rise By Ahmed Morsy
P12 Hellenic deny GANOPE to offer 8 new contract cancelation concessions in bid round Egypt Oil & Gas newspaper (EOG) received an official letter from Hellenic Petroleum Company denying some of the information published in EOG’s previous issue. The letter revealed their objection on what was published in the newspaper about MI SWACO taking over a Hellenic block replacing another major service provider company. Through their letter, Hellenic confirmed that they have not terminated their contract with their service provider and that their contractual relations are still valid. “We also confirm our right to contract with one or more firms for providing the same service as long as such dealings do not violate or contradict with Laws and Rules regulating the petroleum sector,” the letter also stated.
Ganoub El Wadi Petroleum Holding Co. (Ganope) said it will offer eight new blocks in an international bid round, with the collaboration of the Egyptian General Petroleum Corporation (EGPC), after GANOPE succeeded to add five more agreements, to make it reach 15 agreements during the current fiscal year 2010. Geologist. Hany Nassar, Vice Chairman Assist. for Exploration & Production, said his company and the Egyptian Natural Gas Holding Company (EGAS) signed five new contracts with BP plc, the British global energy company, to explore for oil in the regions of Ganoub El Wadi and the Mediterranean Sea with an investments reached up to half a billion dollars. Nassar added in exclusive statements to Egypt Oil & Gas that the agreements include the commencement of drilling and exploration in the Ghazlyat in Asyut, with investments estimated by $10.5 million as a result of drilling three wells after finalizing the 3D seismic studies.
Tharwa delays its entry of stock market
Tharwa’s board of directors decided to postpone vending the company’s shares in the Egyptian stock market. “The decision for the re-assessment was due to Tharwa’s last achievements especially the late discovery in West Esh El Mallaha area,” an official in Tharwa told Egypt Oil & Gas. The official source pointed that Eng. Sameh Fahmy said the company’s achievements will cause the stock to have bigger value in the stock market, as these achievements bring more economic return. Eng. Atef Abdel Sadek, Chairman of Tharwa, lately announced a new discovery in West Esh El Mallaha area west of Hurghada in the eastern desert. Tharwa is jointly owned by the Egyptian General Petroleum Corporation (EGPC), the Egyptian Holding Co. for Natural Gas (EGAS), Ganoub El-Wadi Holding Co. (Ganope), the Ministry of Finance and the National Bank of Investment.
The cost of discovering a new barrel of oil/gas has risen three-fold over the last decade as technology has pushed the frontiers of exploration into more remote areas.
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Interviews
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