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PREVIEW January 2022
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EGYPS 2022: DELIVERING ENERGY TODAY AND SHAPING THE FUTURE ENERGY AGENDA
I
t has been a long journey since the last edition of the Egypt Petroleum Show (EGYPS) took place in February 2020.
As the show closed, the world was suddenly faced with an unprecedented global challenge, a fierce Pandemic, severely impacting industries, economic activity and affecting citizens across nations, creating what the International Monetary Fund (IMF) termed “The Great Lockdown”, the worst economic downturn since The Great Recession. Like all industries, the energy sector was rapidly disrupted by the collapse globally in energy demand, with free-falling oil prices going negative for the first time in history, alongside a dramatic fall in investments. However, what happened in the Egyptian oil and gas industry deserves admiration. Whilst the pandemic created challenges, the Egyptian oil and gas sector showed resilience in the face of the crisis continuing to achieve many remarkable successes which will be showcased and discussed in detail at EGYPS 2022 in February.
The third pillar addressed the digital transformation of Egypt’s oil and gas industry with 2021 witnessing the launch of a one of a kind digital platform; Egypt’s Upstream Gateway which promotes oil and gas bid rounds through easy to access sector data. Because of these economic and structural reforms, the sector contributed 24% of the GDP during the FY 2019/20. Concerning energy security, the petroleum sector worked in alignment with the presidential initiative ‘Haya Karima’ to provide access to energy for all citizens. Besides being affordable, natural gas offers environmental advantages over other fossil fuels and is in turn assisting the country in its energy transition journey. In adopting this presidential guidance, the Ministry has doubled the rate of natural gas connections to residential units annually to 1.2 million. In the coming period, Egypt will pay a great deal of attention to the development of its natural gas resources. Continued in page 4
Pushing Through Adversity Despite the ongoing pandemic, the petroleum sector signed 22 agreements with major international oil companies (IOCs), entering the Egyptian upstream domain for the first time. Moreover, the Ministry prepared a three-pillar plan to further stimulate investments as well as to maximise the sector’s contribution to the Gross Domestic Product (GDP). The first pillar was dedicated to reducing the arrears to IOCs. Minister of Petroleum and Mineral Resources Tarek El Molla disclosed that Egypt had paid more than 86% of arrears by the end of the fiscal year (FY) 2019/20. The second pillar was created to add new areas within the country’s exclusive economic waters in the Red Sea and the Mediterranean. As a result, the sector received new investments of about $1 billion from major IOCs, such as Chevron and ExxonMobil.
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We have been able to see that each year EGYPS is growing more and more compared to the year before. With vaccination programmes gathering pace globally, we are expecting to have a very busy and successful show in February 2022
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HIS EXCELLENCY TAREK EL MOLLA
Minister of Petroleum and Mineral Resources Arab Republic of Egypt
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