Issue: April 2017

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COVER

  • FARM-INS & FARM-OUTS ARE SHAPING OIL BUSINESS DYNAMICS

    In an exclusive interview with Egypt Oil&Gas, AHMED FARID MOAAZ, Country Manager of SDX Energy Inc., discussed the rationale of oil and gas companies behind farm-in and farm-out deals. In his view, these forms of cooperation in the industry contribute significantly to the country’s business growth. Yet, for this to materialize more efficiently, there are still several key issues that the Egyptian government has to tackle in order to streamline the implicated processes and thus generate essential benefits for the country’s economy in general and oil and gas sector in particular.

INSIDE ISSUE

  • Farm-ins, Farm-outs: REASONS, COMPLEXITIES, AND CHALLENGES

    Country Manager of Rockhopper Exploration plc in Egypt, SAMIR ABDELMOATY, shared his views on the farmin/
    farm-out agreements and revealed the challenges in the processes that the companies face in the existing
    economic environment.

  • FARM-OUTS: A New Business MODEL?

    The last tumultuous years in the global oil industry have unleashed the power of creativity performed through smaller and mid-size independents. This wave of alternative approaches is likely to continue.

  • CHALLENGES OF FARM-OUT AGREEMENTS

    Unlike micro-businesses, oil and gas projects are established upon long term cycles, taking the operators many years to fulfill. The existence of recoverable reserves acts as an obsolete uncertainty to the petroleum industry, particularly in the exploration and production phase.

  • BENEFITS OF FARM-OUT DEALS

    The current global oil price environment has challenged both large and smaller players in the market to accommodate the financial, operational, and legal challenges they face. The low crude prices led to a range of new deals, in which oil and gas companies evaluated the sustainability of the existing and new projects in the long term and in many cases opted for farm-outs.

  • Through IPOs to Larger Acquisitions

    In quest for larger capital amidst financial instabilities in the global oil and gas industry, companies resort to different mechanisms to acquire necessary funds to expand their businesses. One way to do so is to opt for Initial Public Offerings (IPOs). This global trend has opened a number of state-owned oil and gas firms to the privatization structures and private companies themselves then take this as a first step to increase their pool of acquisitions.

  • ARAMCO’S INITIAL PUBLIC OFFERING

    Saudi Arabia has set up plans to sell Aramco’s shares by most likely the second half of 2018. The state-owned oil company, the world’s top exporter of crude oil and natural gas liquids, will be publicly listed both in Saudi Arabia and abroad, and its initial public offering (IPO) is expected to be the biggest one ever recorded.

  • KEY TERMS TO CONSIDER WHEN BUYING OR SELLING OIL AND GAS INTERESTS IN EGYPT

    With the Egyptian oil and gas market continuing its rapid development amid increased stability in the country and exciting new deepwater discoveries, upstream merger and acquisition activity is poised to increase significantly. When considering a sale or purchase of an interest in oil and gas properties in Egypt, the most critical document governing the transaction is the sale and purchase agreement (SPA).

  • BEBA LUNCHEON EVENT HONORS H.E. MINISTER TAREK EL MOLLA

    Even amid a significant dwindle in global oil and gas prices, Egypt’s energy sector is witnessing an unprecedented boost, fueling prospects for a bright petroleum industry. On Sunday March 19th 2017, The British Egyptian Business Association, BEBA, hosted a luncheon event in honor of His Excellency, the Minister of Petroleum and Mineral Resources, Eng. Tarek El Molla, bringing together Egypt’s key industry leaders at the Conrad’s Cairo Hotel.

  • SCHLUMBERGER LAUNCHES EXCLUSIVE TRAINING PROGRAM

    The Egyptian oil and gas industry is in need of well-trained talented technicians to work on the Egyptian fields in order to positively affect the production. Hence, Schlumberger Egypt has launched a training program in cooperation with the Ministry of Man Power at a dedicated event held in one of Cairo’s biggest hotels in February. The aim of the program is to train young technicians to meet the best international standards.

  • OIL GIANT REACHING OUT TO SOCIETY

    US based giant, Apache, is the No. 1 oil producer in Egypt and it is determined to build on its success, but not only in the core business, but also beyond that. Apache is indeed a pioneer in corporate social responsibility (CSR) in Egypt and has proved its commitment to the country through its numerous CSR programs.

  • A BOOM OR DOOM OF NIGERIA’S PETROLEUM SECTOR PRIVATIZATION

    The debate about the privatization of the Nigerian National Petroleum Corporation (NNPC) revived in January 2016 after Petroleum Resources Minister of State, Emmanuel Kachikwu, announced the country’s plans to make its first initial public offering of assets owned by NNPC in 2018.

  • MEDDLING POLITICS IN LEBANON’S Energy Industry

    Lebanon has recently fueled prospects for exuberant oil and gas discoveries in the Mediterranean Sea, signaling an energy windfall that would jump start its economy. However, political setbacks that the country has been facing and regional struggles in which Lebanon has been implicated, pose insuperable obstacles to the development of the country’s oil and gas wealth.

  • KPC ACHIEVED PEAK GAS RATE AT QASR FIELD

    Khalda Petroleum Company (KPC) launched the Qasr Gas Compression Project at Egypt’s Qasr reservoir. The objective was to speed up reservoir recovery and maximize the achievement of the peak gas rate, which corresponded to as much as 800 million standard cubic feet per day, when the scheme was proposed.