R ES E A R C H & A N A LYS I S
THE MEDITERRANEAN SEA: EGYPT’S NATURAL GAS TROVE BY AMINA HUSSIEN, REHAM GAMAL & TASNEEM MADI
T
he Mediterranean Sea has the lion’s share in Egypt’s total natural gas production. In fact, on average, the region’s offshore fields prod production. When Egypt turned from natural gas exporter to importer in 2016, the Mediterranean’s largest natural gas discovery, Zoh game in favor of Egypt. The discovery helped Egypt maintain self-sufficiency of natural gas in September 2018. Furthermore, the dev supported the country to resume exports with trial quantities to Jordan in October 2018, according to a report entitled “Petroleum Sec Egypt Oil and Gas in cooperation with the Ministry of Petroleum and Mineral Resources (MoP).
The Mediterranean Sea witnessed remarkable changes and updates during Fiscal Years (FYs) 2017/18 and 2018/19 concerning different aspects, such as bid rounds, discoveries, and production.
EGAS BID ROUND RESULTS IN 2019 ExxonMobil
BID ROUNDS In May 2018, the Egyptian Natural Gas Holding Company (EGAS) announced an Concession international bid round. The company offered a total of 16 blocks in the bid round, of North East which, 13 blocks are located in the Mediterranean Sea, according to EGAS annual Amereya Offshore report 2017/18.
EGAS INTERNATIONAL BID ROUND IN 2018
Launching Date
Results Date
May 2018
Feb. 2019
Signature Bonus ($ million)
10
Financial Commitment ($ million)
220
Exploratory Wells
4
Shell and Petronas Concession
Signature Bonus ($ million)
Financial Commitment ($ million)
Exploratory Wells
Sidi Gaber Offshore
10
180
3
North Al Fanar Offshore
3
129
2
Total Offered Blocks in Blocks the Mediterranean Sea
16
13
ACTIVE AGREEMENTS
The bid round results were announced in February 2019, on the Seven sidelines agreements of the are still active, in the Mediterranean, since signature d Egypt Petroleum Show (EGYPS 2019). The bid round resulted in the 2019. awarding The of seven five agreements cover a total area2,ofof16,099 which 13,573 km 2 km blocks, of which; three are located in the Mediterranean Sea, statedisinallocated EGAS annual area used for exploration activities. The oldest agreement to t report 2018/19. was the Shorouk Offshore Concession, where the giant Zohr was dis Eni. The agreement has been in effect since January 2014. Nevertheless, t The bid round witnessed the entrance of Exxon Mobil in Egyptian upstream activities recent agreement was the Nour Offshore Concession, which has bee for the first time as it was awarded North East Amereya Offshore, according to EGAS since August 2018, according to EGAS data. annual report 2018/19. The signature bonus of the three concessions totaled $23 million. In addition, the total financial commitments recorded $529 million to drill nine wells, according to the MoP’s website. 22
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