Issue: September 2015

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COVER

  • DISCOVERY OF THE DECADE: ENI’S NEW DEEPWATER FIND BIGGEST EVER IN EGYPT.

    “This Historic Discovery Will Transform the Energy Industry in Egypt”

    Statements like this often course through the oil and gas industry in Egypt, but this time it may actually not be hyperbole.

    In a company statement in late August, Eni announced a massive natural gas discovery off the Egyptian coast, the biggest gas discovery ever made in Egypt—or even the Mediterranean. The Zohr field within the deepwater El-Shorouk block has been found to hold an estimated 30 tcf of natural gas. The massive reserves are spread out over roughly 100 kilometers, and push the field’s classification into “supergiant” territory, an increasingly rare type as fossil fuels are drained globally.

INSIDE ISSUE

  • OIL AND INDEPENDENCE: DISSECTING THE REPUBLIC OF SOUTH SUDAN

    South Sudan enjoys the twin status of being the youngest nation in the world and, at the same time, the most oil-dependent country on the planet. 98% of South Sudan’s export revenues are from hydrocarbons. Being the new kid on the block, however, does not mean it does not know how to wield oil as a weapon, both regionally and internationally. There is much that can be learned here, both good and bad. One of the most amazing things about South Sudan, from a petroleum perspective, is that it even exists. To cite Khaled Medani of McGill University—a speaker at a recent conference on South Sudan— “If I was President Omar Al-Bashir, I wouldn’t have allowed the South to go independent, if only because of all the oil.”

  • LOW OIL PRICES AND THEIR IMPACT ON NON-OIL SECTORS

    With oil prices still low, and many oil and gas companies laying off thousands, the oil downturn is marking a significant turning point in the energy industry, and the non-oil sectors have been affected as following

  • WHO IS KIDNAPPING FOREIGNERS? A HISTORY OF SINAI STATE

    On July 22nd, armed men stepped in front of Tomislav Salopek’s car just outside Cairo’s western suburb of 6th October City. Forcing the vehicle to a stop, the men quickly grabbed Salopek and bundled him into a waiting car. Then they were gone, leaving only a trail of dust behind them.

  • UNLOCKING EGYPT’S ENERGY POTENTIAL

    The industry often gets a glimpse of how the state views the it, its challenges and its future; however, rarely does the government present a completely unified outlook of how the industry is viewed and how it plans to deal with challenges in the future. During an event organized by the British Egyptian Business Association (BEBA) Sherif Ismail, Minister of Petroleum and Mineral Resources presented the state’s view of the current challenges the industry faces, as well as the steps necessary to unlock Egypt’s energy potential.

  • MERGER MANIA: A RECIPE FOR RIDING THE DOWNSTREAM WAVE

    Not a day goes by without a headline about a major merger or acquisition in the global oil and gas sector—recently Halliburton swallowed up Baker Hughes for $35b and, bigger still, Royal Dutch Shell bought out BG Group for $70b. But how can this be happening with oil prices being so painfully low? The oil sector everywhere is supposed to be cash strapped, so where are companies—especially independents like Halliburton—getting the money to make such purchases? Why make such a risky move to begin with in such a volatile price environment?