RES E A RC H & A N A LYS I S
GULF OF SUEZ, EASTERN DESERT AND SIN
EGYPT’S CRUDE OIL SQUA
BY AMINA HUSSEIN, REHAM GAMAL, AND TASNEEM MADI
T
he Gulf of Suez and its surrounding areas are among the oldest known hydrocarbon provinces in the world in which crude oil was first dis to Hamdy El Banby’s book entitled “The Egyptian Crude Oil: Past Experience and Future Insights”. The Gulf of Suez, along with the Easter Egypt’s main crude oil producing areas. The Gulf of Suez, the Eastern Desert, and Sinai produced a total of 87.7 million barrels (mmbbl) a in the Fiscal Years (FYs) 2018/19 and 2019/20 respectively, according to the Egyptian General Petroleum Corporation (EGPC) data. On the other hand, these three areas are not actively producing equivalent gas, as 2 on Awarded Blocks in the Gulf of Suez average their production represents approximately 2% of Egypt’s total equivalent gas & the Eastern Desert in 2019 production, according to the Egyptian Natural Gas Holding Company’s (EGAS) data.
BID ROUNDS Company
Concession
In May 2018, the EGPC launched an international bid round which offered different opportunities to International Oil Companies (IOCs) to explore and exploitGPC crude oilWest Amer and natural gas fields in different concessions. The bid round included 11 blocks; four of which are located in the Eastern Desert and the Gulf of Suez, according to North West Neptune the EGPC’s official Website. El Amal
Signature Bonus ($ million)
Minimum Financial Commitment ($ million)
Exploratory Wells
Area(km2)
5
20
10
875.48
11
34.5
3
365
The bid round results were announced in February 2019, on the sidelines of the ACTIVE AGREEMENTS Egypt Petroleum Show (EGYPS). The Egyptian General Petroleum Company (GPC) was awarded a block in the Eastern Desert while Neptune Energy was 1. awarded THE GULF OF SUEZ a block in the Gulf of Suez. The signature bonus of the two offered concessions Since the 1970’s, over 10 petroleum companies have signed 34 agreeme totaled $16 million. Furthermore, the total financial commitments recorded $54.5 exploitand different concessions in the Gulf of Suez until June 2019. Dragon O million to drill 13 exploratory wells, according to the Ministry of Petroleum Mineral operator of 12 concessions in the Gulf of Suez, represents the most active Resources’ (MoP) official website. company in the region with a 35% share of signed agreements, as explain EGPC. As of June 2020, the signed agreements increased to 40, representi 10 EGYPT OIL & GAS NEWSPAPER