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Egypt news roundup

While the discovery of the Zohr gas field has been one of the biggest stories in the oil and gas industry, the Egyptian market has been active in a number of other ways recently.

Deals signed with Israel and Cyprus will see new gas imports arriving, while the country has high hopes of receiving oil from Iran in early 2016. Meanwhile, Egypt's own oil sector is to receive a significant amount of funding from China, as a major corporation is to invest heavily in the sector.

 

CPTDC to invest in Egyptian oil sector

New investment is headed for Egypt's oil sector, as the China Petroleum and Technology Development Corporation (CPTDC) has announced it is to inject $10 million into the country. This would ideally be the first stage of a long-term investment plan, although the company has not outlined how much it is looking to spend overall.

Li Qitang, CPTDC's chief office representative for Egypt, told Daily News Egypt: "We are currently trying to find a local partner from the public sector in Egypt so that we can go forward with the investment plan." The firm is in talks with several Egyptian businesses to achieve this.

 

Egypt to receive gas from Cyprus thanks to new deal

The energy minister for Greek Cyprus, Yiorgos Lakkotrypis, has expressed hope that a deal between the UK's BG International and US-based Noble Energy will lead to the nation supplying Egypt with natural gas. "It's very important that commercial interests are becoming aligned with our efforts to supply gas to Egypt," he said.

Noble and BG will each have a 35 per cent stake in a field in offshore Cyprus, which is thought to contain over 113 billion cubic m of gas. Israeli companies Delek and Avner also each own a 15 per cent stake in the field.

This is good news for Egypt, as BG already operates a gas processing plant in the country, located near Idku. BG said in a statement that this means the field "provides a potential source of gas to Egypt".

 

Deal secured to supply Leviathan gas to Egypt

An agreement potentially worth as much as $10 billion has been signed between the operators of the Israeli gas field Leviathan and Egypt's Dolphinus. The deal will see Israeli gas exported to Egypt over the next ten to 15 years, with Dolphinus having committed to buying up to four bcm of gas per year over this period.

Yossi Abu, chief executive of Delek Drilling, said that this deal showed the potential of Egypt, adding: "The deal with Dolphinus is further proof of the political and economic benefits that may be derived through regional cooperation between states and energy companies."

 

Egypt's Zohr field to revitalise east Med gas industry

The discovery of the largest gas field in the Mediterranean has caused a lot of positive interest in Egypt, and it is thought that it will have hugely beneficial effects for the eastern Mediterranean industry as a whole. The Zohr field in offshore Egypt is thought to contain up to 623 bcm of natural gas.

A large portion of this is expected to be used for Egypt's domestic market, gradually reducing the country's need for liquified natural gas (LNG) imports from other nations. It is thought that the field will reach its full potential in the mid-2020s, and it is hoped that by this point more gas will have been discovered as exploration in the region is increasing.

In addition to domestic use, the gas can potentially be exported throughout the Mediterranean. Egypt has the infrastructure to export LNG at Idku and Damietta, neither of which is currently not being used. It is thought that it will be brought into operation in order to deal with the large amount of gas from the Zohr field.

 

Iran to begin crude exports to Egypt?

Iran has announced that it intends to export crude oil to Egypt once trade sanctions against it have been lifted in 2016. Iranian oil flowed through pipelines and the Suez Canal into Egypt up until 2012, so transportation infrastructure is already in place.
Egypt hopes that oil can be moved through the Sumed pipeline once the sanctions are lifted. The nation's petroleum minister Tarek El Molla said that Iran used to work with Egypt through this pipeline, storing crude oil at the Ain Sukhna terminal and Sidi Kerir. He added that Iran's return to exporting oil would "boost back again the activity of Sumed".


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