|
The Petroleum Industry in
Egypt - December 2003
Members: LE 200, Non-members: LE 300, Int'l Price: $ 300
(Report Cover in PDF)
(Summary and Contents in PDF)
(Sample Pages in PDF)
(Download
Acrobat Reader )
The Petroleum industry is one of the most dynamic and flourishing
industries in the Egyptian economy. Petroleum production is by far
the largest single industrial activity in Egypt, representing 8
percent of GDP. The industry covers 95 percent of Egypt’s
primary energy requirements, and accounted for 30 percent of the
country’s total export revenues in 2002.
This study intends to give an overview of the latest developments
in the petroleum industry, comprised of the oil, gas, and petrochemical
sectors. Emphasis is placed on the future outlook of the industry,
including where untapped business opportunities and potential investments
are. Special attention is paid to the prospects of natural gas exports
and future petrochemicals expansion. The study also explores the
challenges the industry may face, and makes recommendations for
future development.
The first part of the study examines the global petroleum industry.
It focuses on the international production and consumption patterns
for oil and natural gas, while pointing out the location of global
reserves. It also highlights future growth in the international
petrochemicals market. The second part focuses on the oil sector.
Egypt is currently a net oil exporter. With increasing domestic
demand and maturing oil fields in the Gulf of Suez, there are fears
that by 2005-2010, it will become a net importer of oil. The Egyptian
government is attempting to counter this by encouraging increased
exploration, and enhanced oil recovery.
Due to major recent natural gas discoveries and their importance
to Egypt’s economic growth, the study provides a comprehensive
survey of the natural gas sector. A revised estimate of proven natural
gas reserves was released in June 2003, which put the figure at
60 trillion cubic feet (Tcf), based on several new discoveries.
Probable reserves are believed to be around 120 Tcf.
In light of the country’s newly discovered gas reserves,
Egypt aims to join the ranks of major global petrochemicals producers.
This section presents the government’s expansion plans and
private sector involvement in the petrochemicals sector. Egypt already
constitutes one of the largest markets for lubricants in Africa,
and is the second most important refining center in the continent.
The study highlights development plans in transportation and growth
in the petroleum equipment market. Conversely, it explores the challenges
facing the industry such as pricing and subsidies, and environmental
concerns. It concludes with a summary on the future outlook and
recommendations for the industry, noting the significant economic
growth that will accrue to Egypt once the industry’s strategic
goals are fulfilled.
INDUSTRY HIGHLIGHTS:
- There are 50 international oil and gas companies operating
in the exploration, excavation and production of oil and gas in
Egypt with investments of over $2 billion per annum.
- Egypt is the second most important refining center in Africa
after South Africa.
- Egypt has strategic importance because of its operation of
the Suez Canal and Sumed (Suez- Mediterranean) Pipeline, two routes
for export of Persian Gulf oil.
- The total stock of U.S. foreign direct investment (FDI) in
the oil and natural gas sectors amounts to 65 percent of total
U.S. FDI in Egypt.
- A revised estimate of proven natural gas reserves put the figure
at 60 trillion cubic feet (Tcf) with probable reserves estimated
at 120 Tcf.
- In July 2003, Egypt began exporting natural gas to Jordan via
the Taba-Aqaba pipeline, which is forecasted to generate close
to $70 million in its first year in operation for Egypt.
- Output from Egyptian Liquefied Natural Gas (ELNG) Train 1 and
Train 2 has already been sold to international suppliers.
- Egypt's abundant natural gas reserves provide a competitive
advantage in terms of petrochemical production.
- In 2003, the government of Egypt unveiled a $10-billion investment
plan to develop the country's petrochemical sector into a world-scale
industry by 2021.
- Egypt's total market for oil and gas equipment is expected
to grow to $1.4 billion by the end of 2003, expanding at around
10 percent annually for the coming three years.
Table of Content
Top |
