2007 best selling books
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Harbingers of the fall season page 18
Industry Statistics
A new technology for reducing the density of drilling fluids
Falling Off Hubbert’s Peak: A Tale of Earth, Wind and Fire
A thaw in oil relations?
To keep up with the oil demand, new technologies are being developed that allow more efficient and effective recovery of hydrocarbons.
Peak oil has become the term of the century. Governments deny it, producers await it, citizens fear it and economists do little to prove or disprove it.
Will the recent thaw in relations between Cairo and Tehran lead to prosperous cooperation in the oil and gas sector?
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July 2007
Issue 7
ONE of the major and most recent cases that traumatized the public opinion was the bribery and information leak cases filed against Egyptian General Petroleum Corporation (EGPC) members, businessmen and a member of the People’s Assembly (PAM). The case goes back to last April when top EGPC officials were accused for releasing information and reports – classified as top secret – in return for money and gifts from clients who received special facilitations in the EGPC international bids over the last five years and acquired special drilling and exploration areas. Six EGPC officials and seven businessmen and managers, including the former CEO of Alex Oil Co. and PAM Emad ElGelda were involved in this case. According to investigations, ElGelda gave a LE137,000 car to EGPC vice president for agreements and explorations, Mohamed Dahy. In 2002, EGPC offered the south Gulf of Suez and north and west October areas for exploration and drilling in an international bid. Through Dahy, El-Gelda got confidential technical reports about the availability of oil in these areas. Dahy was the scene play maker, as by his status in the company, he employed other EGPC officials to provide him with the needed information. Last month, the court convicted 12 of the bribery charges and absolved one businessman who confessed. Sentences ranged from three to ten years of penal servitude. Six of the EGPC directors were suspended, fined $233,000 and the car in which the bribery took
WITH 566 candidates competing for 76 contested seats, the Shura Council mid-term elections were held, with citizens
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Published by Egypt Oil and Gas S.A.E
24 pages
place was confiscated, in addition to $71,000. Charges included the robbery of approximately half a million dollars from EGPC’s treasury through forged receipts and financial accounts of companies dealing with EGPC. The first defendant, assistant to EGPC vice president for agreements and explorations was sentenced 10 years of penal servitude, three others including the assistant to EGPC’s GM for Gulf of Suez Evaluation, EGPC GM for exploration supervision and EGPC economic analysis manager were sentenced seven years, another defendant was sentenced five years and the remaining eight defendants, including El-Gelda were sentenced three years. In its rationale, the court said “bats of corruption have flocked together and sold their souls before their wares.” EGPC’s case was not the sole ground-breaker over the past six months, bankruptcy, bribery and illegal profitearing accusations were
filed against some employees at Petrogas, Al-Nasr Petroleum Co. and Petroleum Marine Services Co. (PMS). The People’s Assembly appointed a committee to investigate the case of importing foul gas valves by Petrogas which caused gas leaks and threatened citizens’ safety. As a first response towards the case, six managers were exempted from their financial and managerial privileges till the end of investigations. Concerning Al-Nasr Petroleum Co., the head of the labs and chemical research at the Suez branch faces the charge of asking for and receiving an LE2 million bribe from the chairmen of Arab Office for Chemical Services and Rokin for Chemicals in order to get companies’ pricing lists in eight bids offered by Al-Nasr and being chosen for supplying 88 chemical equipments to the company. As for the PMS case, the assistant to Chairman, vice president, technical affairs managers at PMS in addition to marine administration manager at Rashid Petroleum Co. and 10 other owners and representatives of foreign and local petroleum companies were involved in the trial. PMS officials were paid off by companies’ representatives in order to get reports about the high quality and efficiency of their equipments recommending the purchase or rental of these marine devices to PMS, or to acquire bids and contracts. According to the criminal court, the accused officials exploited their job duties and responsibilities to accumulate personal financial profit, which counted for more than LE2 million. As a matter of fact, cases like these are found everywhere because work ethics are “intrinsic”; they come from within. Thus, even if managerial heads implant the traits of honesty, hard work, valuing what one does, having a sense of purpose and being a part of a greater vision in the working environment, still it greatly depends on each employee’s personality to avoid bankruptcy and bribery. The previously discussed cases won’t be the last, yet with more firm regulations set by managerial heads and tight supervision over employees and work flow, they can be to some extent eliminated.
casting their votes to choose amongst three major groups; the ruling National Democratic Party (NDP, 109 candidates), independent runners and the ones belonging to the Muslim Brotherhood (MB). In the governorate of Suez, the district of Al-Arba’in, the Egyptian Minister of Petroleum Eng. Sameh Fahmy competed under the NDP umbrella and achieved an “unprecedented victory.” Fahmy attained more than 90% of the total votes in this district. The closest competitor to Fahmy, Alsayed AlAbed (MB Member) garnered 1065 votes, which is 53% lower than Fahmy’s 53861 votes. In the first round, NDP candidates won 69 of 71 seats. As for the second round, a runoff for 17 seats, where no candidate won a majority, was held. After the results were announced, Fahmy expressed his great appreciation for the Suez citizens and promised that all the plans he stated during his campaign will be fulfilled. Fahmy is to initiate more medical, social and residential services in the governorate.
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