EGYPS 2019 Official Show Preview

Page 1

Official Publication

11-13 February 2019

Egypt International Exhibition Center

JANUARY 2019 Supported By

SHOW PREVIEW

EGYPS 2019: DELIVERING THE ENERGY NEEDS OF TOMORROW EGYPS 2019 comes at an exciting time for the Mediterranean's energy prospects. In the 11 months since the last edition, countries have experienced a surge in exploration activities, while dozens of new infrastructural agreements look to increase connectivity in the region to unprecedented levels. Mediterranean gas production continues to reach new peaks, and increasing energy cooperation between countries may yet help to improve regional stability.

As the largest oil and gas event in North Africa and the Mediterranean, EGYPS has played an important part in enabling the industry to turn these grand plans into reality. For the past two years, the show has provided the platform for industry leaders and government officials; international oil companies (IOCs) and national oil companies (NOCs); operators and contractors; and consultants and investors to engage in dialogue, share expertise, deepen partnerships and do business. In the lead up to EGYPS 2019 and attention is focused on the future, it is important to reflect on the past 11 months and put into perspective the great successes witnessed in the region.

square kilometre seismic survey was completed and the data was set to be presented to the Ministry of Petroleum and Mineral Resources in December. A number of exploration agreements were signed by the Ministry in 2018, including deals to explore areas in the Western Desert and the Mediterranean. Notable agreements included a $1 billion deal with Shell and Malaysia's Petronas for exploratory drilling in the West Nile Delta, and a $9 billion E&P deal with Apache for locations in the Western Desert. In August, Eni acquired the license to embark on exploratory drilling in the Shorouk concession, located in the East Nile Delta basin. The Italian company and its local partner, Tharwa Petroleum, began drilling under the Noor license at the end of September. At the time of announcement, rumours swirled that the amount of gas in-place amounted to a staggering 90 trillion cubic feet (tcf); however, the findings of the initial drilling are yet to be announced. Noor's potential has attracted significant interest from other international companies, Eni agreeing

NEW EXPLORATION ACTIVITIES IN THE REGION

SURGING PRODUCTION Egypt's natural gas sector went from strengthto-strength in 2018, supported by continuing successes at Zohr, which reached output levels of 2 billion cubic feet per day (bcf/d) in September. Overall, Egypt's natural gas production reached a record 6.6 bcf/d in 2018, which is only set to grow as field operator Eni finishes linking the remaining wells to production. According to reports, the field will reach production highs of 3 bcf/d in 2019. Elsewhere, Eni's Nooros field reached production levels of 1.2 bcf/d in 2018, while Atoll reached 350 million cubic feet per day (mcf/d).

INFRASTRUCTURE FOR THE FUTURE This year also witnessed potentially game-changing infrastructural developments that will alter the regions

WE ARE CURRENTLY IMPLEMENTING THE PETROLEUM SECTOR’S MODERNISATION PROJECT, WHICH AIMS AT REALISING THE PETROLEUM SECTOR’S FULL POTENTIAL BY 2021 AS A SUSTAINABLE DEVELOPMENT ENGINE AND A ROLE MODEL FOR THE MODERN EGYPT.

The Egyptian Ministry of Petroleum and Mineral Resources launched two E&P bid rounds last year: one covering 16 blocks in the Mediterranean, and the other covering 11 blocks across the Western Desert, Gulf of Suez and Eastern Desert regions. The winning companies of the tenders - operated by the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC) respectively – are expected to be announced soon, with the contracts having recently been prepared. Egypt is also opening bidding for E&P activities in the Red Sea for the first time. The 10,000

to sell 25% and 20% stakes to BP and Mubadala Petroleum respectively in mid-December.

HIS EXCELLENCY TAREK EL MOLLA

Minister of Petroleum and Mineral Resources, Arab Republic of Egypt

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