Issue: March 2014

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COVER

  • Negotiating Terms and Recovering Costs: Egypt’s Tedious Production Sharing Agreements

    Production Sharing Agreements (PSAs) for oil and gas exploration are seen as a characteristic of developing countries that ''seek to exploit their resources for economic rents but lack the experience or technical expertise to bear the financial burden,'' wrote energy law expert Marcia Ashong in her 2010 Dundee University study on cost recovery. While international oil companies (IOCs), desire for swift recovery of costs and profit maximization, delayed payments to contractors have caused frustration for IOCs as national debt mounts in Egypt. However, there is a general concern surrounding the inherent shortcomings of PSAs and the cost recovery structure itself, especially considering the advent of expensive, high-risk forms of exploration such as deep-water or hydraulic fracturing.

INSIDE ISSUE

  • Insider Perspective: Former Egyptian Minister of Oil Osama Kamal Gives Daring Interview

    Egypt Oil and Gas had the opportunity to interview Former Egyptian Minister of Oil Eng. Osama Kamal.

  • Overview Of Egypt’s Upstream Sector

    There are three major hydrocarbon-producing regions in Egypt: the Gulf of Suez, the Nile Delta, the Mediterranean, and the Western Desert. As of January 1st 2014, the country is estimated to hold 3.36 billion barrels (BCF) of technical liquid (oil and condensates/NGL) contracted reserves, 2.71 billion barrels of them commercial (on-stream or under development).

  • Egyptian Local Content and Achieving In-Country Value

    Since the beginning of petroleum industry and the renaissance era witnessed by all major countries producing hydrocarbons, most regulators of host governments discovered the vital role played by this industry in achieving sustainable development to their people. Whether by achieving a minimum limit for governmental revenue through taxes and royalties, or in the form of petroleum share, regulators discovered that achieving the in-country value throughout an effective local content strategy must be a main target of petroleum industry, in addition to monetary aspects and the petroleum share.

  • An Economy Built upon Sand

    Shortly after Defense Minister Abdel Fattah El-Sisi and his Supreme Council of the Armed Forces (SCAF) removed the former President Mohamed Morsi from power, an Egyptian owner of a small technology start-up told me that the ouster of the Muslim Brotherhood president was a positive development for Egypt's economy. ''The military understands the importance of foreign investment, and they will bring stability back to Egypt. Foreign investors and tourists will return now that the Muslim Brotherhood is gone,'' he confidently declared. Nearly eight months later, it is clear that neither foreign investment nor tourists have been pouring into Egypt. Less clear, though, is where exactly to place the blame for Egypt's economic woes. A close examination of Egypt's economy reveals bleak prospects in the short-term; however, there is nevertheless some hope for cautious optimism.

  • ”Strike!” Is Egyptian Petroleum Safe from Industrial Unrest?

    Mahalla – the spiritual home of Egypt's labor movement.
    For 12 days in February, workers at the state-owned Misr Spinning and Weaving Company staged a massive strike demanding the removal of holding company Chairman, Foaud Abdel-Alim, and the implementation of a EGP 1,200 minimum wage promised to public sector workers in January. After a fortnight of failed negotiations, Mahalla's workers made a patchy deal with the government on February 22: ''You have two months to meet our demands, or we strike again.'' The government has promised to implement the minimum wage. Before, an agreement between workers' representatives and Labor Minister Kamal Abu Eita to oust Abdel-Alim was left unsigned by the Investment Ministry. The minister, Omar Saleh, instead offered a replacement board of ''experienced members,'' an offer flat-out rejected by striking workers.

  • Vast Amounts Of Oil Hiden In Egypt’s Kerogen Rock

    Besides conventional and shale oil, Egypt has a large amount of another hydrocarbon called oil shale. The country has conducted studies on this kerogen rich resource for decades, but its economical exploitability remains in question.

  • Khalda’s Qasr Compression Project: Monthly Progress Report (November 29 to December 27, 2013)

    Qasr is a large, normally pressured gas-condensate reservoir located in the Western Desert, approximately 525 km west of Cairo. The field is operated by Khalda Petroleum Company (KPC), a joint venture between Apache Khalda Corporation and Egyptian General Petroleum Corporation (EGPC).

  • Monthly News

    News of the month, know more about the recent activities this industry has shown during February 2014.