Oil Price: Egypt Set to Become Real Energy Hub

By: Yassmine ElSayed

CAIRO, Feb. 18 (SEE) – Egypt is set to become a real energy hub as

country's oil and gas future looks very bright. This is what has been reported

recently by ‘Oil Price’ specialized portal.

 According to the report, the large scale

concessions awarded during the EGYPS2019 conference in Cairo, 11-13 February,

shows the appetite of IOCs, such as Shell, BP and ENI in this emerging energy

hotspot.

 After years of a major slump, partly due to

continuing payment and security issues, the Pharaohs are again back in the top

league. Continuing concerns about security in Egypt’s Western Desert or the

Sinai no longer seem to be a breaking point for investors.

At the second day of

EGYPS2019, the announcement of five onshore and offshore licenses by EGPC, as

presented by Egypt’s minister of energy Tarek El Molla, has created a very

bright future for the North African oil and gas producer.

"The success story of

the offshore deepwater gas field Zohr, operated by Italian oil major ENI, could

be supported further by positive results from current exploration efforts in

the offshore Noor field.

“If expectations are met, a

new gas hub could be in the making," the report said.

The long awaited results of

the Egyptian natural gas holding company EGAS were announced on the 12th of

February. Dutch oil major Shell was awarded 3 concessions, all crude blocks in

sector 7 West Fayoum, sector 9 South East of Horus, and sector 10 South

AbuSnan. Italian oil major ENI, currently in the news with regards to its major

offshore gas projects Zohr and Noor, was awarded sector 11 East of Siwa, while

sector 2 went to the General Petroleum Company, sector 4 to Neptune Energy, and

sector 5 North Beni Suef to Merlon International.

 With regards to the Egyptian gas prospects,

American oil giant ExxonMobil, which hasn’t been very active in Egypt for

years, reentered the North African country by winning the north of Amreya

Marine Company concession area. The North Sidi Gaber, as well as North El Fanar

areas, went to Shell and Petronas. The North West Sherbin concession has been

awarded to British oil major BP and Eni.

 Cairo’s dreams about becoming an energy hub,

and supplying European markets, are once again alive and kicking. Shell’s Egypt

Chairman Gasser Hanter reiterated this. Hanter stated at EGYPS2019 that

‘Egypt's Idku and Damietta LNG export plants are likely to remain the low-cost

option for East Mediterranean gas producers looking to export”.

He expects that, soon, it

will become very clear to the other participants in the East Med that the

Egyptian option has the best commercial and strategic factors. Some

developments are expected around the East Mediterranean Gas Forum meeting in

March in Cairo.

At present, provisional

agreements have been signed between Cyprus and Egypt to pipe gas from Cyprus’

field Aphrodite to Egypt.

Shell reiterated at

EGYPS2019 that the economics of Egypt's export plants remained compelling;

suggesting any other future liquefaction projects in the region may struggle.

The underlying economics are clear, as the LNG liquefaction plants in Idku and

Damietta already exist, removing the possible multibillion investments needed

if choosing other options.