PetroAmir to dive deep in the Red Sea - Egypt Oil & Gas

November 2010 / Issue 473

Egypt News4El Hamradeeply developsin AlameinEl Hamra Oil Company revealedthat it started to implement the developmentplan for the current fiscalyear of 2010-2011. The plan includesdeveloping six wells in thecompany’s field in El Alamein.Egypt Oil & Gas newspaperlearned that developing those wellswill cost $ 2.5 million as the companyfinalized determining theamount of oil in the layers of boththe exploratory and developmentwells. The company is also planningto develop more of its wells inEl Alamein in the coming period.El Hamra main target in the currentfiscal year is to reach 6000barrels of oil per day, compared tothe previous year of 1300 barrels ofcrude oil per day.PetroSenan of EGPC and NaftogazThe Egyptian General Petroleum Corporation(EGPC) finalized the procedures of launching the jointfirm with Naftogaz of Ukraine, after the late discoveryit made in Abo Senan in the Western Desert. The companyis named PetroSenan.Eng. Abdul Khaleq El Tahawy, former operationmanager at SUCO, was named the Chairman of thenew company.Earlier, Naftogaz paid a $3 million Signature Bonusto EGPC for drilling and exploration in the area of AboEssar in talks to set up 3 L bpd refinery in EgyptDiversified conglomerate, the Essar Group, has expressed its interest toset up an oil refinery in northern Egypt at an estimated cost of about $3.4billion and talks are on to conduct a feasibility study soon, a senior Egyptianminister has said.“The company (Essar) has shown its interest in this regard (setting up anoil refinery in northern Egypt). Our Ministry has met with their officials here.We are negotiating on certain points and talks are on. However, we haven’treached a conclusion so far,” Egypt’s Minister of Trade and Industry, RachidMohamed Rachid, said while addressing a media round-table in Cairo.The Egyptian government had recently announced that the Shashi Ruia-ledEssar Group plans to set up an oil refinery in north Egypt that would have adaily production of around 300 thousand barrels per day.According to the government officials such a project would usually costaround $3.4-billion, .However, when contacted, Essar officials declined to divulge any detailsof the project.“We have operations in all sectors, including oil and gas --upstream anddownstream. As a group, we continue to look at synergistic growth andinvestment opportunities in these sectors in India and other emerging andgrowing economies. However, it is too early to comment on any specificproject,” the company said via e-mail.Senan in the Western Desert, which shortly expectsmore discoveries in the area.Previously, Eng. Sameh Fahmy, The minister of petroleum,approved on turning nine blocks of Naftogazto Oil development, which includes HG34/1, HG34/2,HG34/3, HG34/4 wells. The proven reserve reached3.4 million barrels of oil and 71.3 billion cubic feet ofgas in the formation of Abo Rawash and Bahrya. Thetotal space of the new contract, which is called the developmentcontract HG, 27 kilometers.Meanwhile, according to Egypt’s investment body General Authorityfor Investment (GAFI), several Indian companies such as Essar, MukeshAmbani-led Reliance Industries and Indian public sector unit Gas Authorityof India Ltd (GAIL) have major investment plans in the oil and gassector in Egypt.While the Reliance group had in 2007 announced an $10-billion investmentin the oil refining and petrochemicals and plastic industries, it has notinitiated any project yet.GAIL , which already operates in Egypt through a joint venture withEgypt Kuwait Holding company National Gas Company (NATGAS), hasalso announced an USD 6-million investment in gas distribution ventures inFayoum and Cairo. NATGAS is the largest private local distribution company(LDC) for natural gas in Egypt.The Indian investments, if they materialize, would not only boost economicand trade ties between both the countries but also help India becomethe largest player in the refinery sector and cater to the burgeoning localdemand in Egypt as also the demand emanating from Gulf Co-operationCouncil (GCC) countries, according to GAFI.El Waha to drilla new wellEl Waha Petroleum Co. (previouslyknown as OWAPCO) successfullyguaranteed EGPC approval to adoptthe new financial budget to implementthe development plan of the currentfiscal year 2010-2011 in its acquisitionin West Qarun. The total investmentof the budget is $10million.Egypt Oil & Gas newspaper learnedthat OWAPCO is currently preparingto drill a new exploration well in theMiddle of West Qarun mountain, onthe natural and unnatural way of producingaccording to the new developmentplan. The total investmentof drilling this new well reached$2.5million. In case of the successof the drilling, 3D seismic studieswill be conducted in addition to thatthree more wells will be drilled inthe same area.It is worth mentioning that El Wahais a joint venture company betweenEGPC and Sahara Petroleum ServicesCompany (SAPESCO).Ganope offersnew 7 blocksGanoub El Wadi Petroleum HoldingCompany (Ganope) invited the qualifiedinternational petroleum exploration companiesto participate in the bid round forseven exploration blocks in Eastern andWestern Deserts.Hany Nassar, vice chairman for Agreements& Exploration, said that his companyinvited those companies for the firstinternational bid round 2010, aiming toboost its production from its concessions.Nassar added, in exclusive statementsto Egypt Oil & Gas newspaper, that thebid round included three blocks in SouthWestern Desert, adding two blocks in thearea of Nile Valley, and the rest in EasternDesert.Nassar also added that Vegas Oil & Gaswas among the companies that farmed outof its acquisition in the western side of theEastern Desert.Poland explores oil and gassites in AfricaPoland’s State Gas and Oil company(PGNiG) has announced that it is to invest70 million dollars prospecting innorthern Africa, next year.The company is hopeful of locatingoil deposits in Egypt and natural gasin Libya.An initial gravimetric assessment hasbeen made in Egypt already this monthand if the gathered data confirms the economicfeasibility of the project, drillingmay be completed in 2015 and regular exploitationof the source may commence.PGNiG’s licensing agreement withthe Egyptian government speaks of an18 per cent company share on conditionextraction reaches the level of at least500 thousand tons of crude oil annually.Estimates speak of some 22 million tondeposits in the Bahariya region coveredby the agreement.In Libya, the speculated gas depositsmay total up to 150 billion cubic metersof natural gas over an area of 5 and a halfthousand square kilometres in the Murzugregion.PGNiG has planned the first four prospectingdrilling sites there next year.NORPETCO to measure its pressureNorth Bahariya Petroleum Company (NORPETCO) is preparing to conduct pressuremeasurements for its wells, in order to monitor its tanks and producing wells.The procedure aims to reach the most idyllic way of production. Besides, it is performedin the middle and bottom layers of Abu Roash sands of West Qarun well.The pressure of the tanks reached 1756 psi at a 5300 feet depth under sea level.NORPETCO performed a maintenance process over ten wells in the past fiscalyear of 2009-2010, to sustain the rate of the current production levels to launch thereserves from the production point to the delivery and process unit in Qarun.It is worth mentioning that NORPETCO is joint venture company between EGPCand Sahara Oil & Gas.

Step-out well cased at southern Egypt oil fieldJordan looking to ink new gas deal with EgyptPetroSA eyes joint venture withEgypt firmSouth Africa’s PetroSA is seekinga joint venture with an Egyptiancompany, its chairman said, asit wants to continue working in thecountry although its own oil explorationefforts in Egypt have notbeen successful.The South African national oilcompany already holds explorationacreage in Egypt and is “seriouslyconsidering” entering a new roundof bids announced by the EgyptianGeneral Petroleum Corporation,Linda Makatini told Reuters.Makatini, in Cairo for a high-levelstate visit that included PresidentJacob Zuma and was aimed at bolsteringthe weak trade ties betweenthe two countries, said she wouldmaintain interest in Egypt.“We understand that you cannotwork in countries without engagingor participating jointly with thefirms already operating there,” shesaid in an interview.PetroSA was in talks with severalfirms under the Egyptian Ministryof Petroleum but it would alsoseek opportunities with companiesthat are not necessarily 100 percentowned by the state, Makatini said.“We come with the approach thatI’m at your back door, my back dooris also open to you,” she added.PetroSA’s exploration efforts inEgypt failed to yield results afterthe firm spent some $100 million,Makatini said.“As is the business of oil, it didnot yield much results for us but itdid not stop our appetite for wantingto work in Egypt,” she said.Egypt’s proven reserves of oiland gas rose to 18.3 billion barrelsequivalent in the year to end-Juneand the country expects to boostthem to 20 billion over the nexttwo years, the state news agencysaid in August.Makatini said PetroSA was waitingfor a political green light beforeselling a stake of up to 30 percentin a planned 400,000 barrel-per-dayrefinery at South Africa’s port ofCoega, potentially among the largestin sub-Saharan Africa.The company has said it wastalking to China’s Sinopec as wellas Malaysia’s state-owned oilcompany Petronas and Sonangolof Angola.“Sinopec is a partner. Definitely,we have engaged with them andthey have expressed interest andrequested further information,”Makatini said. “We are looking toprogress but once the political goaheadis given.”Dana Gas Egypt and Sea Dragon Energy Inc., Calgary,set pipe and plan to test a potential extension well4 km southeast of the nearest well in Al Baraka field insouthern Egypt’s frontier Kom Ombo basin.Logs at the Al Baraka SE step-out well indicate 46ft of gross pay in the Kom Ombo A and C formations.Total depth is 8,750 ft.Meanwhile, Sea Dragon reported progress at otherwells in Al Baraka field.Minor oil saturations were observed at the Al Baraka-9well, which tested noncommercial quantities ofoil from the Six Hills E sands. However, petrophysicalanalysis indicates 50 ft of potential oil pay in the shallowerAbu Ballas and Sabaia formations.The companies recompleted the Al Baraka-5 wellto isolate a bottom set of perforations suspected ofproducing water, installed a bridge plug, and returnedthe well to production. They plan to rework Al Baraka-6to isolate water production from the lower SixHills F-2 sands and recomplete the well in the SixHills F-1 sands.Al Baraka field is producing 600-700 b/d of oil, andthe completion, workover, and fracturing program nowunder way is expected to lift output towards an expectedyearend target of 2,000 b/d. The two companies hold50-50 interests in the field.The government is looking to sign an agreementwith Egypt to boost natural gas suppliesto the Kingdom, an official said on Wednesday.At a press conference at the Prime Ministryyesterday, Minister of Energy and MineralResources and Minister of EnvironmentKhalid Irani said officials have been in closecontact with the Egyptian side to increase theamounts of natural gas, with an agreement expected“soon”.Currently, the country receives 240 millioncubic meters of gas from Egypt annually as partof a 2004 agreement under which Cairo suppliesAmman with natural gas at preferential prices.Under the new agreement, the Kingdom wouldreceive an additional one billion cubic meters,according to ministry officials.Currently, 60 per cent of the Kingdom’s electricityis produced from natural gas, and the remainderfrom heavy oil and diesel, Irani noted.A shortage in natural gas supplies over thesummer forced the Kingdom to rely on dieseland heavy oil for 80 per cent of the country’selectricity generation, Irani said, noting thatEgypt has faced availability issues related to theexpansion and maintenance of its natural gaswells, resulting in the disruption.He stressed that the country will continue tolook for alternative sources of natural gas, bothwithin the Kingdom and abroad.Cairo and Amman reached an initial agreementin 2004 to provide the Kingdom with 2.4billion cubic meters of natural gas at preferentialprices, with an “agreement in principle” toeventually provide an additional 900 million cubicmeters.QuotesNovember 2010 / Issue 47Egypt’s Citadel to consolidateafter fast growthEgyptian private equity firmCitadel Capital has begun consolidatingits businesses after spurts ofrapid growth, yet still plans an initialpublic offering (IPO) of one ofits companies, its chairman said.Since its founding in 2004,Citadel has expanded quickly tocontrol investments worth $8.3billion, mainly in the Middle Eastand Africa, through a series ofplatform companies.“Our concentration now is focusingon our existing investments,making sure that they’reperforming to their maximumpossibilities,” Chairman AhmedHeikal told the Reuters MiddleEast Investment Summit in Cairo.Until about the end of 2011, thecompany planned “to make verysmall incremental investments inthose businesses, to debottlenecktheir capacity, to add small capacity,”he said. “These are verysmall investments that generate alot of money.”Citadel is looking to offer newshares in one of its companies,electricity and natural gas distributorTaqa Arabia, in an IPObefore June.The new funds would help Taqa,which also generates electricity, toexpand its business in Egypt andelsewhere in the region, he said.“The company (Essar) has shown its interest in this regard (setting upan oil refinery in northern Egypt). Our Ministry has met with theirofficials here. We are negotiating on certain points and talks are on.However, we haven’t reached a conclusion so far”Rachid Mohamed Rachid, Egypt’s Minister of Trade and Industry, on Essarin talks to set up 3 L bpd refinery in Egypt“The first (Iranian) shipment of 25,000 tones of petrochemicals wassent to Egypt”Reza Hamzelou, Director of Petrochemicals Commercial Co, on Iran exportsfirst petrochemicals to Egypt“We are very pleased having Foster Wheeler committed as our PMC,and this represents an important part of ensuring the success of theproject”Basil El-Baz, Chairman and CEO, Carbon Holdings, on Foster Wheelerwins project management consultancy contract in Egypt“As is the business of oil, it did not yield much results for us but it didnot stop our appetite for wanting to work in Egypt”Linda Makatini, Petro SA President, on PetroSA eyes joint venture withEgypt firm“Our concentration now is focusing on our existing investments, makingsure that they are performing to their maximum possibilities”Ahmed Heikal, Chairman of Citadel Capital, on Egypt’s Citadel to consolidateafter fast growth5The IPO could raise around $175million, depending on the percentagestake sold and the price.Citadel, whose stake in Taqa is33-34 percent, had broached theidea last January of a Taqa IPO onEgypt’s exchange.CONSOLIDATIONCitadel underwent an earlier periodof consolidation from August2007 until October of last year, butthen began a series of major transactionsthat lasted until March.These included formation of asolid waste management firm inEgypt, the purchase of an indirectstake in Rift Valley Railways inKenya and Uganda and the expansionof Wafra, a platform companyfor investments in northern andsouthern Sudan.Citadel recently put togethera $2.6 billion debt package forEgyptian Refining Co, which isbuilding a $3.7 billion oil refineryin Mostorod in northern Cairo.Construction will begin as soonas the loan is closed, probably byyear-end, Heikal said.Citadel listed its own shareson the Egyptian stock exchangein November.Heikal said the individual companiesin its portfolio would continueto expand even as Citadelitself paused to take stock.

November 2010 / Issue 477

International News8Oil Search drills ahead atYemen appraisal wellThe Al Measar-2 appraisal well in Block 7, Yemen,witnessed a drilling ahead pln by Oil Search, in 17-1/2” hole within the Harshiyat Formation at a measureddepth of 1,111 meters.The Al Meashar-2 is the first appraisal well ofthe Al Meashar-1 oil discovery, which was drilledin early 2010. The discovery encountered oil in thefracture basement; however oil flow rates were limiteddue to potential reservoir damage, which wasincurred while drilling.The appraisal well will be drilled from the existingAl Meashar-1 well pad and deviated parallel to thediscovery well. The well is planned to be drilled usingManaged Pressure Drilling, which is designed tominimize damage from drilling fluids in the reservoir.The well will be drilled to a planned total measureddepth of 3,740 meters.ExxonMobil awards SouthernIraq contract to HalliburtonHalliburton has been awardeda well-work integrated servicescontract by ExxonMobil IraqLtd. for refurbishment of wellsin the West Qurna (Phase 1) fieldin southern Iraq.According to contract, Halliburtonwill provide on-sitelogistics and technical supportfor both rig-less and rig-assistedworkovers. Other services providedby Halliburton includeprovision of a workover rig,coiled tubing, slickline services,logging, production enhancementand well testing.“We believe Halliburton’sstrong presence in Iraq, coupledwith our technical leadership,was a factor in securing thiscontract from ExxonMobil IraqLimited,” said Dave Lesar, Halliburton’sChairman, Presidentand CEO. “We are pleased to seeour investment and commitmentto provide services within Iraqbeing recognized by companiessuch as ExxonMobil and its WestQurna (Phase 1) project co-venturers.”Kuwait Energyscores in Iraq’sbidding contestKuwait Energy has been awarded20-year term gas development contractsfor Siba and Mansuriya gasfields in Iraq’s third bidding round.Siba field is located in Basra Governorate,while the Mansuriya field issituated in Diyala province.Kuwait Energy jointly bid withthe Turkish Petroleum Corporation(TPAO), the national oil company ofTurkey, for both gas fields. KuwaitEnergy will be the operator of Siba,participating with a 60% contractorshare, while the remaining 40% to beheld by TPAO.On the other hand, TPAO will be theoperator of Mansuriya, participatingwith a 50% contractor share, KuwaitEnergy 30% and Korea Gas Corporation(KOGAS) 20%.The bids were judged on a remunerationfee in US dollars per barrelof oil equivalent (boe) and a plateauproduction target expressed in millionsof standard cubic feet per day(MMSCFD) of dry gas. The successfulremuneration fee for Siba was$7.5 per boe with a plateau productiontarget of 100 MMSCFD. ForMansuriya the successful bid was $7per boe with a plateau production targetof 320 MMSCFD.Dr. Manssour Abou khamseen, KuwaitEnergy Chairman and ManagingDirector, said, “We are excited to starttoday a long-term partnership withIraq for the development of their naturalgas resources and look forward toapplying our experience and technologytowards building gas productionin Iraq that meets domestic needs andexport opportunities. Kuwait Energyhas been working towards obtainingsuch contracts for over three years, andtoday marks a significant milestone forKuwait Energy.”Thirteen companies participated inthe bidding round for the three gasfields, Akkas, Siba and Mansuriya.The fields together have estimatedreserves in excess of 11 trillion cubicfeet of gas.Saudi Aramco, Shell Extend Natural Gas Drilling to 2015A joint venture between Saudi Aramco andShell to drill for natural gas in the kingdom’sempty quarter has extended its exploration licenseby five years to 2015.The South Rub al-Khali Co., or SRAK, wasone of three ventures launched in 2003-04 thatgave international oil companies upstream accessto Saudi Arabian energy reserves for thefirst time since 1980.“We...requested for a second exploration period,which means a new commitment from thecompany including drilling wells and collectingseismic data,” a spokesman for SRAK toldDow Jones Newswires Tuesday. “The governmentofficially approved our request of enteringPetrofac to manage Sharjah gas plantPetrofac, the international oil & gas facilitiesservice provider, has been awarded a contract bythe Government of Sharjah, to take over operationalresponsibility and facilities management ofthe Sajaa Gas Plant and related assets, located approximately30km from the commercial centre ofSharjah, UAE.The five-year contract was awarded following acompetitive open bidding process and is worth inexcess of $250 million.The Government of Sharjah, acting through theSharjah Petroleum Council, holds a 60% participatinginterest in the Sharjah gas and associatedliquids Concession. BP currently holds the remaining40% and is the Operator of all SharjahConcession petroleum operations, together withthe Sajaa gas processing plant and associated storage,pipelines, condensate export terminal andShalco LPG facilities. The Concession will expirein November 2013 and the Government ofSharjah and BP are actively working together onassuring a smooth transition of the BP-operatedfacilities to the Government.Sheik Sultan Bil Ahmed bin Sultan Al-Qassimi,Deputy chairman of Sharjah Petroleum Councilcommented on the contract, “I look forward toworking with the Petrofac team as they work towardscontinuous improvement of safety and operationalperformance at the plant and its associatedassets. Appointing Petrofac before the end ofConcession allows for a smooth management ofa second exploration period for five years.”Saudi Arabia plans to greatly increase gas productionin order to meet domestic energy demandand free up crude oil for export. However, thecountry hasn’t yet discovered non-associated naturalgas in sufficient quantities to replace oil as thefuel for its planned electricity plants and guaranteecheap feed stock for new petrochemical factories.Shell’s decision to continue its drilling programwill allay some fears about the commercialviability of the exploration areas after thewithdrawal of France’s Total from the venturein 2008. SRAK is now a 50-50 venture betweenAramco and Royal Dutch Shell.SRAK said its new exploration phase wouldchange to be carried outwhile BP is still presentas an equity holder in theconcession.”Petrofac, through itsOffshore Engineering& Operations (OE&O)business unit, has beenawarded the Duty Holdercontract to provide a fullrange of facilities managementservices to theSharjah Government including:reservoir management,drilling andwell services, plant operationsand engineeringand project management.By the end of 2010 Petrofac will assume controlof the operations while the Government of Sharjahwill become the Concession Operator. Duringthe transition program, around 130 personnel,currently involved in running the operations, willtransfer to Petrofac.“I am delighted to announce this contract withthe Government of Sharjah which further consolidatesPetrofac’s position in the Emirate andthe Middle East. Petrofac has a long establishedportfolio of managed facilities in the UK sectorof the North Sea, where we pioneered the DutyHolder model. This expertise, combined with theinvolve the drilling of three wells and the acquisitionof 3,600 square kilometers of 3D seismicdata and 3,000 square kilometers of 2D seismicdata. It will also submit to the government an appraisalplan for Kidan area, a large sour gas fielddiscovered in the 1960s.group’s substantial existing operations in the region,means that we are well equipped to delivera strong outcome on this contract for the Governmentof Sharjah and BP. Our focus will be on asafe and effective transition, and asset performanceand integrity,” said Bill Dunnett, ManagingDirector of OE&O.Abdulkarim Almazmi, President and GeneralManager of BP Sharjah, said,“Petrofac’s track record demonstrates that it hasthe capability to ensure the uninterrupted, safe andreliable operation of the facilities, while we transferOperatorship to the Government of Sharjahprior to the end of Concession in 2013.”

November 2010 / Issue 4713necessary infrastructure and facilities, neededfor the gas export projects such as the threemajor projects to export liquefied natural gas.During the period 1999/2000 - 2009/2010,the total foreign investments in explorationand development, reached about $35 billion.The influx of foreign investments is due tothe high oil potential in Egypt, which is supportedand confirmed by global reports andstudies. According to the latest report of theU.S. Geological Survey (USGS), the NileDelta and Mediterranean Sea regions containundiscovered natural gas reserves of about223 trillion cubic feet, in addition to undiscoveredcrude oil and condensates reservesof 7.6 billion barrels.The Petroleum Sector succeeded in signingvarious petroleum agreements, the mostimportant of which is the agreement signedat the beginning of 2009 with the Italian Edisonto involve a production sharing partner inAbu Qir offshore fields, achieving the highestrecord of foreign investments at this significanttime reaching over $3 billion, of which$1.4 billion signature bonus and the remainingare investments over several years for the developmentof the Abu Qir offshore area. Thisagreement will be recorded in the history ofthe Petroleum Sector as the most significantpetroleum agreement that will contribute tobolstering and increasing Egypt’s natural gasreserves and production.A Strategic Framework Agreement for thedevelopment of joint initiatives in the fieldsof exploration, production and transportationof hydrocarbons was signed, on 27/7/2010, byEng. Sameh Fahmy, Minister of Petroleum, andENI’s CEO Paolo Scaroni, in the Italian city,Milan.This strategic framework agreement ofcooperation comes within the context of carryingout the cooperation initiative, signed duringthe Italian-Egyptian Summit, which tookplace in May 2009, Sharm el-Sheikh, and washeaded by President Mubarak and the ItalianPrime Minister, Silvio Berlusconi, to promotecooperation between the two countries in thefield of development.The Strategic Framework Agreement providesa joint cooperation initiative in the Mediterraneanregion, outside the Egyptian bordersthroughout a partnership between the EgyptianPetroleum Sector and the Italian CorporationEni, to mutually exchange information amongthe parties and joint studies to pursue commonprojects in oil and gas domains. The Agreementalso provides the participation of thePetroleum Sector in Eni’s upstream activitiesin the development of petroleum concessionareas in Iraq and Gabon.Moreover, the cooperation agreement includesallowing the opportunity for Eni, touse the gas transportation capacity in the ArabGas Pipeline system, in coordination with theother countries involved in the Pipeline and inaccordance with the agreed upon measures,where Egypt presently exports gas to Jordan,Syria and Lebanon and which may be expandedand interconnected to other gas transportsystems in the coming period to transport naturalgas, particularly from Iraq.Given that, the Arab Gas Pipeline is a strategicline and one of the most significant regionalpipelines along with allowing the necessaryflexibility to exchange as well as transfer quantitiesof natural gas, currently and in the future.It also signed two petroleum amendmentsbetween the Egyptian General Petroleum Corporation(EGPC) and the British CompanyBP & the German RWE Dea, in North Alexandriaand the west Mediterranean deepwaterto develop estimated reserves, at about 5 trillioncubic feet of gas and 55 million barrels ofcondensate contributing to securing daily gasproduction supplies for the domestic market.First gas is expected in October 2014, at an estimatedaverage of 900 million cubic feet perday and 10 thousand barrels of condensatesper day. The amendment of the agreementsincludes conditions that guaranteed Egyptgreat advantages, particularly with the risks ofdevelopment in the Mediterranean deep watersconcession area, due to high pressure andtemperature. In addition, the foreign partnerswill take upon all the needed investments forthe development, which are about $ 9 billion,without any cost-recovery. This agreement unlocksa new phase in realizing the huge potentialof the Nile Delta basin, which will play animportant role in meeting regional & domesticenergy security needs in the coming decades.The Agreement is regarded as the biggestsingle investment in the upstream field to date,as the project will be supported with the necessarytechnical expertise, in addition to the deploymentof leading-edge technologies.The success of the Petroleum Sector in attractingforeign investments was representedin the successful conclusion of 17 new petroleumagreements and amendments during 2009 /2010 with investments of about $ 3.3 billion invarious regions of Egypt. Foreign investmentin exploration, development and operation domainsduring the same year reached about $7.7 billion.However, there are large available opportunitieson a large-scale for investment in otherareas of the petroleum industry including; refining,petrochemicals and gas liquefaction &processing petroleum equipment projects, inaddition to the promising domain of MineralResources, which represents a new and importantarea to attract investment.The Egyptian Petroleum Contracting CompaniesStart to Work AbroadThe early years of the 21st century, witnessedthe expansion in the activities ofEgyptian Petroleum Contractors, i.e. Petrojet-ENPPI – PMS – Gasco – EDC – CarGas –GasCool – SanMisr, to operate in the Arab,African & Latin American countries in spiteof the competition with major internationalcompanies. The value of the work carriedout abroad reached, about $5.1 billion for theimplementation of projects in 14 countries,which contributed to increasing the presenceof Egypt and its ability to compete in the labormarket abroad.Local ManufacturingOne of the most significant landmarksin the history of the modern Egyptian petroleumindustry, is the Petroleum Sectortendency to maximize and deepen localmanufacturing throughout increasing themanufacturing capacity in the productionworkshops of the Petroleum Sector companiesto encourage domestic production andreduce import along with rationalizing foreigncurrency utilization to maximize thesurplus and achieve optimum monetizationof natural resources along with maximizingthe added value & provide new job opportunitiesfor youth as well as the transfer andadaptation of the world’s latest technologies.The Petroleum Sector, also, entered the domainof manufacturing onshore and offshoredrilling rigs due to its significance in maximizingthe oil resources in light of the expansionand intensification of oil and gas exploration.The Petroleum Sector managed to manufactureof the first onshore oil rig (Mubarak -1) at theend of 2007. Mubarak -1 rig started operationin the concession area of northwest Gemsa inthe Eastern Desert for Vegas Co. and achieved2 oil discoveries in the Eastern Desert in thefirst two wells drilled for the Greek VegasCompany, followed by the production of another4 oil rigs. Egypt also entered strongly,for the first time, in the field of manufacturingoffshore rigs in cooperation with China andJapan; it has been prepared to manufacture 5offshore rigs. The first factory for the manufactureof oil and gas pumps, which is the firstof its kind in Egypt and the Middle East, wasestablished in Suez in participation with theGerman Ruhrpumpen Co... Oil extraction absorbentand compressing pumps were manufacturedfor the first time in Egypt in participationwith Lafkin International Company, inaddition to establishing the first factory for theproduction of pipes and drilling caissons in theGulf of Suez, at Ain Sukhna using the latestJapanese and Chinese technologies.Development of Upper Egypt AreasThe Petroleum Sector increasingly prioritizesthe development of Upper Egypt areasto bring about overall development to raisethe standard of living of citizens. The mostimportant measures that were taken in this regardare the establishment of an independentstructure to carry out all petroleum activitiesin Upper Egypt, Ganoub Al Wadi PetroleumHolding Company. Since its establishmentin 2003, the company managed to intensifyits efforts to achieve comprehensive developmentin Upper Egypt in all petroleumactivities and was able to achieve first oildiscovery there, i.e. Al Baraka-1, which wasput on stream at the end of 2007, followedby Al Baraka - 2, 3, 4,6. This is considered astrong breakthrough and a new phase in thehistory of the Egyptian oil industry and UpperEgypt, as a promising area on the mapof petroleum production in Egypt. It alsoencourages the continuous intensificationof oil exploration in other areas in the southand attracts more international companies.Mineral Resources: New Vision for a BetterFutureMineral Resources Sector has witnessedachieving many successes, since transferringits affiliation to the Ministry of Petroleum inOctober 2004. The most important of whichare completing preparation of the first integratedstrategy for the Mineral Resourcesin Egypt for the next 25 years, and the newmineral resources draft law aiming at settinga new legal framework for the Mineral Resourcesactivity that attracts investments andprovides local industry needs of the mineralraw materials, in addition to erecting industrialprojects depending on these availableraw materials, that leads to the increment ofEgypt’s revenues.The first integrated plant at Mubarak complexfor the production of gold, silver andcopper at Al Sukkari region was establishedrepresenting an industrial, technological andeconomic leap in the gold industry in Egypt,and a serious beginning to join gold producersin the world extensively during the comingyears. Moreover, the mine’s productionalso includes silver and copper which raisesthe economic value of the project. Total production,since startup in January 2010 until2nd of October 2010, is about 3.4 tons, andaccording to the production plan, it’s expectedto produce about 5-6 tons of gold fromAl Sukkari mine during 2010, which exceedswhat was produced in Egypt over the lastcentury (7 tons).In addition, production continued fromHemsh mine at the Eastern Desert, whichwitnessed production of the first gold bar inApril 2007 after a halt of more than 50 years.Gold regular commercial production, sinceits start up, in January 2008 till now reachedabout 100 kilograms.Currently, the construction of an integratedglobal city for gold industry inMarsa Alam is under study, with investmentsestimated of about $500 million,with the participation of Egyptian, Araband foreign investors to produce the finalgold jewellery.Preparation of establishing the first databasefor mineral resources in Egypt iscurrently underway, as the first specializedcenter for information in this domain.In the framework of the Ministry of Petroleumcontribution to the developmentof Sinai regions, a plan for establishingan industrial, mining complex has beencompleted, and it is planned to offer a bidround for the exploitation of coal mines inAl Maghara area at Sinai, which includesproven reserves of about 25 million tons,that will help to develop the Sinai region.

Head Quotes14By: Tamer Abd El-aziz - ShadyAhmedDr. Hamdy El-Banaby, former ministerof petroleum extended his greetingsto all the sector employees in generaland to Eng. Sameh Fahmy in specific,appraising the outstanding developmentrates the industry has witnessed.“The Egyptian petroleum sector hasbeen blessed with a series of discoveriesand attainments, which are the resultsof the vigorous efforts and strategiesof the promising industry heads.”El-Banaby added that the utilizationof up-to-date technologies and developingthe different skills of employeeswere among the major factors behindthe successfulness and richness of thepetroleum sector.“The industry is facing serious challengesthat should overcome it, suchthe over energy consumption, the increasingenergy price… etc. Unfortunately,we lose 70%-80% of our energydue to our over consumption,” warnedEl-Banby. “Hence, we should promotethe efficient utilization concept to saveour resources we should review theway we are consuming our energy. Thisis should not be the role of the Ministrysolely, we should all as citizens cooperatetogether.”Eng. Ismail Karara, former Ministryof Petroleum under-secretary for gas,said that the Ministry bears the heavybarrier of supplying the local demandwhile subsidizing several petroleumproducts for citizens. “Despite thisexhausting load, all the employeesheaded by Eng. Sameh Fahmy exertall their efforts to continuously satisfythe demand. This is can be reflectedin the number of agreements and contractssigned to ensure the increase ofproduction rate, to open new doorsfor investments and at the same timeto solve the country’s unemploymentproblem by offering job vacancies inthe new projects.”Karara extended his wishes for amore prosperous petroleum sector andsuggested to modify the working conditionsof the industry personnel as anaccreditation for their stupendous effortsto better serve the community.The Petroleum Day is the celebrationthrough which people should assess thepositivity of this vital sector and valuethe achievements attained, said TaherAbdel Rehim, Operation Manager ofRashid Petroleum Company. “No onecan deny the ever increasing rate of discoveriesthat have satisfied the increasingdemand for energy.” He furtheradded, “we should even intensify thenumber of gas discoveries, taking intoconsideration the importance of naturalgas worldwide, which is considered asa backbone for any community… it isa clean and cheap source of energy thatcan be easily liquefied and transferredto various industries”.Similarly, Eng. Abdel Alim El-Sawaf,Operation Manager of PetroShahdCompany, believes that the PetroleumDay is an honorary occasion to recognizethe men standing behind the successesof the petroleum industry. “Eng.Sameh Fahmy has always been keen topraise Egypt’s endowments and capabilitiesamong other countries throughhis sector… this celebration is also achance to exchange more ideas to betterdevelop the sector and dissolve anykind of barriers facing it,” he added.El-Sawaf shed lights on the Ministercontinuous support to all companiesand employees, whether psychologicallyor financially, to boost their effortsand strengthens the work cycle formore achievements and successes.“This year’s celebration may witnesspivotal decisions and crucial announcementsfrom the Minister side, to drawthe Ministry of Petroleum strategy fornext year, especially that most of thecompanies have scored rates in production,development and drilling rates,”expected El-Sawaf.Compared to last year, many agreementswere sealed and positive reviewsand directions were made concerningsome projects, such as theUpper Egypt Gas Pipeline that wasfully implemented by the Egyptianworkforce, increased the productionrates of proven gas and reserves andcontributed to the gas transfer to Sinai.“I expect that this year’s celebrationwill be no less than the previousones,” confirmed El-Sawaf.“This is the day when excellenceand stupendous efforts are recognizedand honored,” this how Eng.Omar Abdel Rehim Bibars, Chairmanand Managing Director of PatroAmirCompany described the PetroleumDay celebration.This celebration is of a great value toall petroleum companies as they seizethe opportunity to present their ideasand their company’s new plans throughprivate meetings with the Minister ofPetroleum. “Some companies wouldsuggest expanding work cooperationbetween the Egyptian and foreign companiesthrough the signing of moreagreements as an attempt to ensure theflow of more foreign investments intothe country, which would add up to thenational treasury,” he added.Bibars declared that most of companiesare attributing more attention toincrease the exploration and productionplans as well as to develop the youngemployees, which are allpart of the dynamic strategy set by theMinistry of Petroleum.He also highlighted that the Ministerhas always recognized the top officialswho had great roles in the petroleumsector, especially the former ministersof petroleum, Eng. Ahmed Ezz EldinHelal, Chemist Abdel Hady Kandil, Dr.Hamdy El-Banaby.“During the fiscal year of 2009-2010,the Ministry of Petroleum honored thecompanies that exceeded the productionlevel of 50 thousand barrels perday. These companies succeeded to improvetheir production rates, raise thevolume of their exports and added tothe crude oil, condensates and naturalgas reserves,” Bibars concluded.In the same way, Eng. Abdallah El-Desouky Sultan, Chairman of WestBakr Company believes that honoringthe partners of success is considered asan incentive for the industry workforceto keep their efforts and potentials toadd more to the industry achievements.“This year, the Minister would honor aswell names of the employees who losttheir lives while being on duty, the petroleumindustry martyrs.”The Ministry of Petroleum hasnot been concerned with productionachievements and industry progressonly, but it has also dedicated specialattention to the employees by offeringadequate work rules and conditionsand investing in their skills and capabilitiesas they are the core of the industrytriumph.

November 2010 / Issue 4715

November 2010 / Issue 4717We have four branches in Egypt,Syria, Libya and Algeria. In addition,we have agents in Kuwait, Saudi Arabia,Chad and Kazakhstan.Established in 1992, what are themajor achievements of PETRO-GRAPHICS in the last period?- There is a fact that the competitionin Egypt is so fierce regardingthe pricing issue and regardless thequality of the service. In Egypt, thepriority in any tender is for the lowprice which is always culpable for us.So, locally we struggle hard to overcomesuch obstacle.On the other hand, our commitmentsabroad are more than whatwe do in Egypt by fifteen times. Wealways believe that we will get therevenue on the long run since it isimpossible to supply a good qualitywithout gaining the revenue. However,one of our local achievementswhich we are proud of was successfullyperforming the data managementof Belayim Petroleum Company(Petrobel). Besides, we performeda great work in establishing the databaseof Libya as a country.What is PETROGRAPHICS’ planfor 2011?- In 2011, we are going to focus onthe high and unique techniques. Thehigh technique which we are planningto provide next year will separate usfrom such competition. So as to reservethe good reputation and the high qualityof our services, we should alwayshave unique solutions and services.Besides, we try to concentrate on theusual problems and errors which thecompanies face specially on reducingthe risk of choosing the places of drilling.It will be considered as a revolutionin such field.We are also planning to give the opportunityfor the fresh graduates tohave scholarships whether they aregeologists and geophysicians. Wewill decide the number graduates tolet them a one-year studying coursein addition they will get salaries. Thetraining program will be based on therequirements of the market whichwill make them swiftly qualified.What is the volume of the total investmentsof PETROGRAPGHICSlocally in the next fiscal year?- There are two kinds of the servicescompanies: the first kind is theone which owns and utilizes materials.While the other kind is basicallywork on studies and information. So,the one which utilizes the materialsnecessitates huge investments. As forus, we work on knowledge and informationas well as investing in manpower.Hence, our investments in allour branches don’t exceed $10millionper year.What are the companies whichPETROGRAPHICS operates with?- We are working with Agiba,Petrobel, DanaGas as well as HBS.Currently, we also work with KuwaitOil Company (KOC) through Schlumbergeras a subcontractor in specificallyin the field of data management.Do you consider any other expansionsafter having four branches inEgypt, Libya, Algeria and Syria?- We are performing some projectsin Sudan to test the market there inorder to study the possibilities of establishinga branch there. At this time,one of our colleagues in the companyis visiting Mexico to also study theaspects of the Mexican oil and gasmarket so as to inaugurate a branchthere. Hence, the company’s vision isto have two arms – headquarters - oneof them in Kazakhstan and the otherone in Mexico to serve in the Far Eastand the Latin America. So, we hopethat he will come back with positiveresults about the market there.Operating in Egypt, what are themajor challenges that face PET-ROGRAPHICS?- One of the major obstacles facingour company in Egypt is thepricing issue. In order to producea high quality product or supplyingadvanced services, it necessitates ahigh cost. In our projects we haveprofessional consultants and theyrequire high salaries. On the otherhand, in any domestic tender, thenumber one aspect is the low priceregtardless of the good quality. So,we always be away of the classicprojects seeking unique and advancedservices required. The worstthis which we fear of is that with thedeclining prices, the companies willbe forced to provide low-qualityservices which will consequentlyhad a bad effect on the Egyptian petroleumsector in general.Who are the major competitors ofPETROGRAPHICS in the Egyptianmarket?- Regarding the Data Management,we have SAPESCO and Spectrum.While in processing, we haveWestern, BGS, CGG, Spectrum andGuide. And for Reservoir characterization,there is Western geophysicalas well as Fugro.Dr. Abou Bakr RadwanCan you rank PETROGRAPH-ICS among its other competitorsin Egypt?- Regarding the data management,we are considered number one. Wehave a very important praise fromDr. Abd El-Migeed El-Attar, formerpresident of Sonatrac in Algeria andformer Ministry of Water Resources.When El-Attar visited our branch inLibya he said that he witnessed andsaw many data management companiesworldwide, but he didn’t see anyonelike Petrographics in the fieldof data management.Owing to the fact that we celebratethe National Petroleum Daynext month, what do you wantto say in the 35th anniversary ofsuch occasion?- In such occasion, we hope thatthe Egyptian companies will beencouraged to work out in foreigncountries and of course also in thelocal market. As we are an Egyptiancompany so we compete with otherinternational companies that are alwaystrusted more.We don’t seek a fund of the Ministryof Petroleum, but at least we needits aid in making and performing ourduties inside and outside Egypt. Forinstance, the ministry should makea deal with the Ministry of ForeignAffairs and the Egyptian Consulatesto pave the road or ease the worksof the Egyptian companies abroad.When an Egyptian company worksabroad it demands informationabout the market, databases regardingthe other companies operatingin the sector. So, we hope to findthe deserved solicitude and interestabroad. Besides, we hope that theEgyptian companies abroad are notfelt ad a burden on their shoulders.

Political20When oil solidifies political tiesToo many success stories of the Egyptian petroleum sector crownthe celebration of the Petroleum Day this month. Strengtheningbridges connecting not only the companies operating in theEgyptian territories, but also connecting the Egyptian petroleumindustry to its counterparts, has proven the vitality ofthe Egyptian industry on all levelsBy Sama Ezz Eldin“ S m o o t h -ing the way for internationaldrillingcompanies and speedingup the process forthe exploration operationsare the two main reasonsbehind the rising number ofglobal companies setting eyes onEgypt lately,” said Ashraf Abdul Hady,Senior Drilling Engineer of ApacheCorp, the top American Oil andGas Company, to Egypt Oil& Gas Newspaper.Apache, which hasbelieved in the greatpotentialsof the Egyptianterritories, madeit take a huge stepby acquiring BP’sassets in Egypt in a$7 billion deal, throughwhich it takes hold of four developmentleases and one exploration concession.This acquisition covers approximately394,300 acres in Egypt’sWestern Desert. The assets have estimatedproven reserves of 20 millionboe (59% liquids), and first-half 2010net production of 6,016 barrels of oiland 11 MMcf of gas per day.“This is under-explored acreage ina highly prospective area of the WesternDesert; a 3-D seismic acquisitionprogram is under way,” said G. StevenFarris, Apache’s Chairman and ChiefExecutive Officer. “BP’s holdingsalso include strategically positionedinfrastructure including a natural gasprocessing plant, a liquefied petroleumgas plant and oil and gas export lines.These facilities will enable Apache toincrease production from our existingfields in the Western Desert.”Apache’s second-quarter net productionin Egypt averaged 98,495 barrelsof oil per day (bopd) - up 8.5% from thefirst quarter - and 388 MMcf of gas perday, up 7%. At year-end 2009, Apachehad estimated proven reserves of 309million boe and 11.1 million gross acresin Egypt.This is one of the success stories ofthe petroleum sector in Egypt, whichdemonstrates the progress of the oil andgas sector in the country during, andeven after, the global economic crisis.Strengthen foreign tiesLooking back at a year filled withmuch prosperity, not only local successstories but also international ones, thename of Egypt has been tightened withso many other countries and multinationalcompanies.“The ministry influenced the relationshipsbetween Egypt and Iraq, throughPetrojet and Enppi, the two solid Egyptiancompanies, by signing contracts toprovide maintenance to Iraqi oilfields,” said Taher Abd El Raheem,Assistant Chairman for Operations ofRashid Petroleum Company. “The ministerwas recently in Cyprus during thecelebration of their Independence day,to show Egypt’s appreciation to theircountry and also to sign a Memorandumof Understanding (MoU). It shows thatEgypt soon to be in oil and gas businesswith Cyprus.” There has been talk ofEgypt using Cyprus as a bridge for exportsto Europe and on prospects for thetraining of Cypriot engineers by theirEgyptian counterparts on techniques forthe extraction of oil and natural gas, hefurther added.It was a very smart move fromEgypt’s side; to send the minister of petroleumto Cyprus in such day. Mainlyto gain their communion in having futureprojects with Egypt,” highlightedthe top official.Abdul Hady added to the reasonsbehind placing Egypt among the wellknown countries in the oil and gas field,“The minister helped in strengtheningEgypt’s relationships with other countriesthrough permitting the existence ofthose countries in the local market, byoffering them easy amended contractsand assisting their drilling operationsby providing the facilities they need.”At the beginning of the year, the industrywitnessed many projects thatreflected the ministry’s continuousefforts to tauten Egypt’s relationshipswith other countries. For instinct, ajoint venture will be established betweenthe Egyptian General PetroleumCorporation (EGPC) and the UkrainianNaftogaz to start production fromHG34-3 well, the Kuwait EnergyCompany proved its existence more inEgypt by making its 7th discovery inRas Qattarah block, Dana Petroleumannounces new oil field at North ZeitBay… and many more examples.The German based Rwe Dea allocateda total of $3.6 billions for the fielddevelopment in the North Alexandriaand West Mediterranean Deep Waterconcessions, which is considered as thebiggest single investment for the companyto date. “Our aim is to proceedwith this field at a rapid pace, so that wecan go into production by 2014,” saidThomas Rappuhn, Chief Executive Officerof RWE DeaAG.Similarly, Australian-listedBeachEnergy announced thatit is stepping up for explorationwork in Egypt, sayingthat it plans to spend up to US$33millions in the country’s onshore playover the next two years. Beach revealedit had sealed a deal with the Kuwait EnergyCompany, which will hold a 22%stake in the Abu Sennan concession inthe Western Desert and a 15% interestin the Mesaha Area concession, effectivefrom January 1st this year.Additionally, the big negotiations betweenItalian Edison and the Egyptianauthorities to sell its share of the gasproduced from the North Abu Qir field,which Edison won with a Signature Bonusof $1.4 billion.Also, IPR, and its partner, SojitzOil and Gas, hit another discovery ofoil-bearing structure in the underlyingAlam El Bueib sands in the Yidma-Alamein License in the Western Desert.Dana Gas, another gas strike inEgypt’s Nile Delta, showered the industrywith a string of discoveries that havealready lifted its Egyptian oil and gasoutput by 20% this year.UK-based Circle Oil and Sea DragonEnergy Inc are both known with theirgood relation with Egypt and theirmany discoveries this year.Besides, the Egyptian industry hasalways been an open gate for new comers.BGP, one of the worlds leading geophysicalservice companies, awarded itsfirst contract in the country to conducta gravity survey project by GeofizykaKrakow at Bahariya Block.In addition, Sureclean, the internationalindustrial cleaning and wastemanagement firm, announced expansioninto the North Africa and MiddleEast region with the launch of a newbase in Egypt. “Our presence in Alexandriaand Cairo will ensure we haveresources in place to meet the needs ofthe market. Winning our first contractsso quickly is a clear indication of thehigh demand there is for our services,”said Paul McAlister, Sureclean BusinessDevelopment Director.On the international level, South Africaeyes possible business cooperationwith the Egyptian authorities. SouthAfrica President Jacob Zuma plans tovisit Egypt later this month to discusspossible future oil deals. InternationalRelations and Cooperation MinisterMaite Nkoana-Mashabane confirmedthat further discussions for oil explorationby the largest national oil companyPetroSA to be carried out in Egypt.Correspondingly, Jordan and Egyptties are closer than ever because of theEgyptian natural gas supplies to theKingdom. With Libya, the two countrieshave been working together tojointly develop their oil and naturalgas industries.Following the same goal to expandoversea ties, the Egyptian Ministryof Petroleum held intensive talks andmeetings with India, China, UK, Azerbaijan,Iran and Poland to boost relationships.Currently, the Ministry isnegotiating the establishment of a naturalgas-operated fertilizer plant with anIndian company. Also, the EgyptianMinister of Petroleum Eng. SamehFahmy studied with President of ChinaPetroleum & Chemical Corp (Sinopec)means to bring China’s mega companyoil services into Egypt.Moreover, BG Group’s Egyptian subsidiary,the country’s largest natural gasproducer, announced it would invest $2billion to install a pipeline and drill newwells off Egypt’s Mediterranean coastto help meet the country’s growing demandfor gas. “Egypt is a core area forus ... and we will continue to look atnew blocks,” said BG Egypt PresidentArshad Sufi.The ministry reached out also to Azerbaijan,when Fahmy held talks withthe Azerbaijani Minister of Industryand Energy Natig Aliyev Fahmy todiscuss the possibility of marketingAzeri gas through existing pipelines inEgypt. The two also reviewed a proposalregarding the refining of Azericrude in Egyptian refineries and itstransport from Egypt to African andAsian markets. “We may also collaborateon exploration ventures and intechnology and knowledge sharing inthe oil and gas sectors,” added Fahmy.As a matter of fact, the EgyptianPetroleum Ministry was successful insomething that many others failed in,which is to bring good relations betweenEgypt and Iran. The good newscame when an Iranian official said thatTehran has exported its first petrochemicalsto Egypt, “The first shipment of25,000 tons of petrochemicals was sentto Egypt,” Iran’s Mehr news agencyquoted Reza Hamzelou, Director ofPetrochemicals Commercial.Poland’s State Gas and Oil Company(PGNiG) also announced that itwould invest some of its $70 millionbudget to prospect locations of oil depositsin Egypt. An initial gravimetricassessment has been made already andif the gathered data confirms the economicfeasibility of the project, drillingmay be completed in 2015 and regularexploitation of the source may commence.PGNiG’s licensing agreementwith the Egyptian government speaksof an 18% company share on conditionextraction reaches the level of at least500 thousand tons of crude oil annually.Estimates speak of some 22 million tondeposits in the Bahariya region coveredby the agreement.Egyptian operational success abroadProudly, Enppi (Engineering for thePetroleum & Process Industries) andPetrojet (the Petroleum Projects andTechnical Consultations Company), thegovernmental-fully owned major companieshad the biggest share in buildingEgypt’s relationships with othercountries. The Minister announced thatEnppi and Petrojet won contracts in 14different countries with investmentsworth $4.7 billion. Recently, Petrojetsecured its first project in UAE, worth220 million Egyptian pounds for establishingnine gas pipelines. In addition,Petroject will work on the waterpipelines to the Habshan area, which isknown for its Habshan 5 Gas ProcessingPlant. The project is owned by GascoAbu Dhabi.Furthermore, Enppi was awardeda$30-million contract in Syria in Al-Furat oil field to increase productionfrom two clusters of oil fields in theDeir al-Zor region. In addition, it won$400-million project to install petroleumstorage tanks at Yanbu in SaudiArabia and build 47 tanks of varioussizes with a combined storage space of12 million barrels for Saudi Aramco’snew Yanbu oil refinery.A look to the futureDr. Hamdy Abu El Naga, the wellknownpetroleum expert, said that inhis opinion, the country should keepit close with African countries, such asSudan and Yemen, “They should be inEgypt’s future schedule.”Moustafa Mohamed, OperationManager of Agiba Petroleum Company,highlighted “The Ministry wasnever low on providing all the assistto Egypt’s relation with othercountries. The ministry was keen onboosting production to attract moreinternational companies into the localmarket to explore. It also provided allthe investments for both explorationsand development”.Dr. Shawky Abdeen, PICO InternationalPetroleum said that the mostsuccessful method to attract foreigninvestments into the country is byincreasing reserves, “If the investorlooked in the numbers of the country’sreserves and found it high, then theywill surely have the confidence to investin such country.”“Egypt is still full of many explorations,we just need to look in the rightplace, and that will not come withoutforeign investments with contracts thatwould bring more prosperity, whetheron the revenue wise or the relation withother countries,” added Abdeen.

November 2010 / Issue 4723

Youth Voice24SPE CUSC: glory starts with a stepSociety of Petroleum Engineers (SPE) is the largest individual membership organization serving professionalengineers scientists, managers, and students in the exploration and production (E&P) segments of theworldwide oil and gas industry. It is associated with more than 80,000 members participate in 162 sectionsin 65 countries and 161 student chapters in 46 countries. SPE’s membership represents 113 countries. And,the journey continuesBy Mohamed El Shazly, Public Relations Head, SPE Cairo University Student ChapterThe history of SPE begins within the AmericanInstitute of Mining, Metallurgical andPetroleum Engineers (AIME), which was foundedin 1871 in Pennsylvania, USA, to advance theproduction of metals, minerals and energy resourcesthrough the application of engineering. In 1913,a standing committee on oil and gas was createdwithin AIME and proved to be the genesis of theSociety of Petroleum Engineers (SPE). In 1957, theorganization was officially founded as SPE, a constituentsociety of AIME. SPE became a separatelyincorporated organization in 1985.Mission• Collect, disseminate and exchange technicalknowledge concerning the exploration, developmentand production of oil and gas resources,and related technologies for the public benefit• Provide opportunities for professionals to enhancetheir technical and professional competenceSPE- Cairo University Student Chapter is one ofthe biggest and most reputable chapters all over theworld. It was founded in 1987; it has been awardeda lot of awards for its unique and outstandingperformance in improving and developing studentsand qualifying them to match the requirements ofthe industry in general and the Oil & Gas industryin particular. SPE- Cairo University Student Chapterhas reached such an outstanding performancethrough its ambitious well planned and organizedevents which aim to link the Academic life to thePractical life and allow the students to know whatis going in real life work environment.Awards• July 2006, Chapter of the month all over the world• 2008, Outstanding Middle East Student Chapter,one of the best six outstanding chapters all overthe world, Final Contest in Louisiana, UnitedStates, ATCE 2009• January 2009, Chapter of the month all overthe world• 2009, SPE Outstanding Chapter Award all overthe world, Final Contest in New Orleans, UnitedStates, ATCE 2009.MissionSupporting graduates to become professional engineersby• Improving their skills and technical knowledge• Enhancing their social responsibility for the developmentof all industries; therefore, our communityVisionBe an effective and outstanding student chapterthat supports the Oil & Gas industry in Egypt andall over the worldMembershipThe chapter has now more than 600members all from different departmentsof the Faculty of EngineeringTargetThe chapter is directed towardsstudents from all departments andUniversities, and fresh graduates.SPE- Cairo University Student Chapterhas reached such an outstandingperformance through its ambitious,well-planned, and organized events,which aim to link the Academic lifeto the Practical life.One of our main educational activitiesis SPE School, which is afull-year technical program workingin parallel with the academicyear. Its Objective is to graduatequalified engineers who have goodpractical experience in the oil &Gas field, and good vision for thepetroleum industry.SPE SchoolIt was initiated four years ago, in2007. It consisted of four classesonly and 165 participants. A yearlater, SPE School had been expandedto seven classes and 360participants. In 2009, SPE had beenextended again to eight classes and400 participants; an increase thatreflected the importance of continuousimprovements. In 2010, wethought of increasing the numberof classes more and more to benefitmore students and cover all the aspectsof the Oil & Gas Industry andwe come up with 12 classes and 650expected participants.In fact, the lack of qualified engineering graduatesis a major problem that challenges the Oil &Gas industry, that suffers from the absence of highqualifiedengineers with a good vision towardsthe future and good practical experience in orderto develop the industry and the community wherewe live in. hence, our future. So we are here tryingto establish this bridge of communication betweenthe students in the Egyptian universities and theneeds of the Oil & Gas industry. This will be madethrough delivering practical, social and skillful valuesto our participants.In this context, SPE Scholl 2011 agenda includesa series of sessions that will cover major fields inthe industry. The SPE School 2011 will consistof 12 classes in different subjects in addition toprojects to be held around the year, through whichan assessment will be made to evaluate the successof sessions to develop the participants’ skills.This will also help us to ensure the commitmentof the participants towards what they learn.Also, these sessions will offer participants thechance to have a very close view of each one’sfield of specialization. That would be accomplishedthrough the contact with the most up to date technologiesto practically apply the science that theystudied very well at university. This is can be consideredas an effective attempt to reduce the gapbetween the academic study and the professionalpractice and that is the target that we want to reach.SPE School classes cover the following: DrillingSenior, Drilling Junior, Production Technology,Reservoir, Well service, Safety, PetrochemicalIndustry, Petroleum Soft Ware, Geophysics &Geology, Petroleum Economics and Management,Petroleum Orientation and Inspection & Welding.Moreover, SPE CUSC organizes five workshops.The first is called LOL “Lift Our Life”, designedas a basic soft skills program for the beginners athuman development track. The second workshopis “Thinkestien” tht basically teaches participantsvarious thinking techniques helping them in makingdecisions and solving problems or creating newideas. The third one is called SMS or “Super ManSkills”; this workshop develops interpersonal skillsso that participants can make balance in their lives.The fourth workshop is named “PhotoJob”, it helpsparticipants to plan well for their career after graduation.“Mark It” is the fifth workshop; which istackling marketing principles, entrepreneurship andhow to start your own business.Finally, there will be a complete project thatsimulates the professional life style, which is SPEOil Field Simulation Project. It is one of the mostcreative Projects that SPE Cairo University StudentChapter has made. This project contributes with theother projects to keep this chapter one of the mostoutstanding chapters around the world.SPE Oil field Simulation Project is a project thatsimulates the professional work life style withinthe Oil & Gas industry through work in some imaginarycompanies and the practice in the hardestworking conditions and let the participants knowwhat they are going to be involved in and that theyhave to take into consideration all the factors surroundingthem.

Industry Statistics26Egypt StatisticsTable 1 Egypt Rig Count per Area - September 2010Production - August 2010AreaGulf of SuezOffshore 12LandMediterranean seaOffshore 11LandWestern DesertOffshoreLand65SinaiOffshoreLand10Eastern DesertOffshoreLand12DeltaOffshoreLand4TotalRIG COUNTTotal12116510124114Percentage of Total Area10%10%57%9%11%3%100%Upper EgyptE.D.Med. SeaW.D.DeltaGOSSinaiTotalSold PlannedMillion cubic feet Million cubic feet1327323929914767322232519034514092639246137022635248204780%94.19100.14107.77122.28131.0596.74OilBarrel20575229254276023921109265571961210637217704768Actual Planned %Equivalent GasBarrel26546400785980029534006444006500038069000CondensateBarrel1509904190194720891160311455503726623Liquefied GasBarrelTon363920 32348540362 48032106094 9431140532 1249287994 78221238902 110125Total Gas & DerivativesBarrel205752292542284202241790450133793316417204230491660739293Oil177047681829930096.75Rigs per AreaRigs per SpecificationCondensate37266233602355103.45Gas & Derivatives393079024055339496.93Total607392936245504997.25US Dollar5.698CompanyAlexandria Mineral Oils[AMOC.CA]Sidi Kerir Petrochamicals[SKPC.CA]Euro7.650Average Currency Exchange Rate against the Egyptian Pound(September 2010/ October 2010)Stock Market Prices(August 2010/ September 2010)High46.813.80Sterling8.898Low40.2412.14Yen (100)6.739Table 1Wortld Crude Oil Production (Including Lease Condensate)(Thousand Barrels per Day)Libya Sudan Other OPEC 1WorldPersianGulf 2NorthSea 32009 DecemberTable 2World Oil Supply 1 (Thousand Barrels per Day)UnitedStates 2PersianGulf 3 OAPEC 4OPEC 5 World9,439 23,087 23,947 34,203 85,3492009 December1,650 495 2,454 72,868 30,834 20,464 3,6442009 Average9,156 22,894 23,802 33,877 84,3912009 Average1,650 483 2,410 72,299 30,639 20,402 3,6732010 JanuaryE 9,275 23,212 24,074 34,461 85,4912010 January1,650 500 2,407 73,123 31,068 20,571 3,689FebruaryE 9,540 23,294 24,145 34,563 86,181February1,650 510 2,434 73,537 31,163 20,650 3,600MarchAprilE 9,587 23,265 24,099 34,511 86,212E 9,542 23,315 24,146 34,512 86,095March1,650 515 2,444 73,518 31,074 20,581 3,682MayE 9,639 23,449 24,262 34,589 86,182April1,650 521 2,385 73,438 31,048 20,607 3,622JuneE 9,427 23,639 24,435 34,844 85,895MayJuneJuly2010 7-MonthAverage1,650 525 2,401 73,389 31,107 20,725 3,4851,650 510 2,411 73,291 31,351 20,904 3,1261,650 510 2,402 73,691 31,366 20,934 3,3701,650 513 2,412 73,426 31,168 20,711 3,5101 OPEC: Organization of the Petroleum Exporting Countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait,Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.2 The Persian Gulf countries are Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. Productionfrom the Kuwait-Saudi Arabia Neutral Zone is included in Persian Gulf production.3 North Sea includes the United Kingdom Offshore, Norway, Denmark, Netherlands Offshore, and Germany Offshore.Revised data are in bold italic font.July2010 7-MonthAveragePE 9,570 23,680 24,462 34,870 86,474PE 9,511 23,409 24,232 34,622 86,0751 «Oil Supply» is defined as the production of crude oil (including lease condensate), natural gas plant liquids, and otherliquids, and refinery processing gain (loss).2 U.S. geographic coverage is the 50 States and the District of Columbia. Beginning in 1993, includes fuel ethanol blendedinto finished motor gasoline and oxygenate production from merchant MTBE plants. For definitions of fuel ethanol, oxygenates,and merchant MTBE plants3 The Persian Gulf countries are Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. Productionfrom the Kuwait-Saudi Arabia Neutral Zone is included in Persian Gulf production.4 OAPEC: Organization of Arab Petroleum Exporting Countries: Algeria, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, andthe United Arab Emirates.5 OPEC: Organization of the Petroleum Exporting Countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait,Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.E=Estimated data. RE=Revised estimated data. PE=Preliminary estimated data.Revised data are in bold italic font.

November 2010 / Issue 4728