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M. Elshazly
demand and declining production levels.
2 However, the substantial
natural gas discoveries, particularly in Egyptian Economic water in the
Mediterranean Sea, encouraged the country and the International Oil
Companies (IOCs) to fast track the development of such discoveries
which made substantial additions to overall supply.
3
Investment in the oil and gas sector was affected by the political
turmoil and changes of governments after January 25, 2011 revolution.
The security status of the projects was a matter of concern; however,
Egypt witnessed a stable, friendly investment environment, particularly
after the presidential elections held in 2014. Apart from that, The Egyptian Ministry of Petroleum (MOP) adopted an ambitious plan to attract
foreign direct investment in the upstream sector and sustaining oil and
gas production to meet the domestic market tremendous demand; such
plan was promoted by several political, technical and legal pillars that
positively impacted E&P activities in the country.
This was promoted by an ambitious initiative launched by the Egyptian MOP in collaboration with the World Bank to modernize the Egyptian Petroleum sector to attract investment in the Egyptian upstream
sector through streamlining E&P bid rounds processes and enhancing
the commercial terms and conditions of the E&P model agreements
adopted by NOCs for petroleum exploration and exploitation.
8.1.2 Changing the Energy Mix to Diversify Energy
Resources
According to BP’s 2019, statistical Review of World Energy, and the
FY 2018/2019’s annual report of the Egyptian Natural Gas Holding
Company (EGAS), much of the natural gas consumed in Egypt is
2 U.S Energy Information Administration Country Analysis Brief: Egypt, available at https://
www.eia.gov/international/analysis/country/EGY, accessed 18/3/2020.
3 The Egyptian Government has fast-tracked the development of the Zohr and Atoll fields and
the West Nile Delta (WND) project. These fields made substantial additions to the overall
supply. It is worth mentioning that Zohr discovered in August 2015 and labelled as the largest
offshore natural gas field in the Mediterranean. In August 2019, production from the field
reached more than 2.7 billion cubic feet of gas per day (bcf/d), roughly five months ahead
of the development plan, available at https://www.eni.com/en-IT/operations/egypt-zohr.html),
accessed 19/3/2020.
M. Elshazly
demand and declining production levels.
2 However, the substantial
natural gas discoveries, particularly in Egyptian Economic water in the
Mediterranean Sea, encouraged the country and the International Oil
Companies (IOCs) to fast track the development of such discoveries
which made substantial additions to overall supply.
3
Investment in the oil and gas sector was affected by the political
turmoil and changes of governments after January 25, 2011 revolution.
The security status of the projects was a matter of concern; however,
Egypt witnessed a stable, friendly investment environment, particularly
after the presidential elections held in 2014. Apart from that, The Egyptian Ministry of Petroleum (MOP) adopted an ambitious plan to attract
foreign direct investment in the upstream sector and sustaining oil and
gas production to meet the domestic market tremendous demand; such
plan was promoted by several political, technical and legal pillars that
positively impacted E&P activities in the country.
This was promoted by an ambitious initiative launched by the Egyptian MOP in collaboration with the World Bank to modernize the Egyptian Petroleum sector to attract investment in the Egyptian upstream
sector through streamlining E&P bid rounds processes and enhancing
the commercial terms and conditions of the E&P model agreements
adopted by NOCs for petroleum exploration and exploitation.
8.1.2 Changing the Energy Mix to Diversify Energy
Resources
According to BP’s 2019, statistical Review of World Energy, and the
FY 2018/2019’s annual report of the Egyptian Natural Gas Holding
Company (EGAS), much of the natural gas consumed in Egypt is
2 U.S Energy Information Administration Country Analysis Brief: Egypt, available at https://
www.eia.gov/international/analysis/country/EGY, accessed 18/3/2020.
3 The Egyptian Government has fast-tracked the development of the Zohr and Atoll fields and
the West Nile Delta (WND) project. These fields made substantial additions to the overall
supply. It is worth mentioning that Zohr discovered in August 2015 and labelled as the largest
offshore natural gas field in the Mediterranean. In August 2019, production from the field
reached more than 2.7 billion cubic feet of gas per day (bcf/d), roughly five months ahead
of the development plan, available at https://www.eni.com/en-IT/operations/egypt-zohr.html),
accessed 19/3/2020.