3 companies refine 12.2M tons of crude oil in 2017/18
Three companies affiliated to the Egyptian public business sector were enabled to refine about 12.2 million tons of crude oil during fiscal year 2017/2018. This step came to meet the needs of the local market of major petroleum products such as oil and gas. These companies are Cairo Oil Refining Company (CORC), Assiut Oil Refining Company (ASORC), and Amreya Petroleum Refining Company (APRC). As per Cairo Company, it refined around 4.8 million tons at its oil refineries in Mostorod and Tanta to cover some of the local market needs of 80 and 92 gasoline, naphtha, diesel, jet fuel, heating oil, kerosene, and aromatic solvents. The revenues of these refining processes reached LE 2.2 billion. While Assiut refined about 3.7 million tons of crude oil at Assiut refinery to produce high level products of 80 and 92 gasolines, solar, heating oil and jet fuel to meet the needs of power stations. Assiut Refinery plays an essential and strategic role in providing Upper Egypt governorates with 60-65 percent of petroleum products. Amreya Company provided a part of the domestic needs of 80 gasoline, solar, kerosene, heating oil, in addition to producing essential and special oils, paraffin wax, Alkyl benzenes, toluene and raw wax for export. Amreya’s revenues during the year reached LE 2.6 billion with executed investments of LE 194 million. Generally, Egypt targets to invest LE 145.6 billion in the petroleum sector in 2017/2018, marking 15.5 percent of the total investments of the year. Egypt recently signed several oil agreements for the exploration of oil and gas in several areas of Egypt, including the Mediterranean, Western desert, Nile Delta and the Gulf of Suez. On Saturday, Minister of Petroleum and Mineral Resources Tarek el-Molla signed two deals to explore for petroleum and gas in two deep-water areas in the Mediterranean and the Western Desert with companies from Canada, the United Kingdom, the Netherlands, Malaysia and Kuwait. The Ministry of Petroleum clarified in a statement that the deal stipulates drilling 12 wells at investments of at least $1 billion. The minister also signed a grant of $2 million. In August, Molla signed two new agreements for the exploration of oil and natural gas in Sinai and the Suez Gulf with investments of $65 million. The minister also signed grants of $3.5 million, an official statement revealed. The first agreement was signed with General Petroleum Company (GPC) in Sinai to improve its production within the framework of the Ministry of Petroleum’s plans to increase production and support the national companies working in oil and exploration field. The statement referred that the second agreement was signed with the Petroleum Corporation and Zaafarana Petroleum Company, Oceaneer Zaafarana, and Sahary for Oil and Gas in the Gulf of Suez. Molla announced that the number of signed petroleum agreements reached 61 new agreements since 2017 with a minimum investment of $14 billion to explore oil and gas in Egypt’s land and sea areas. He noted that Egypt’s existence on the international petroleum map will help the state restore its historical role in the region. The minister said that the oil sector will continue to sign more petroleum agreements as these agreements are considered the cornerstone for achieving new oil discoveries and attracting more investments. On August 14, Molla signed three new oil agreements for the exploration of oil and natural gas in the Mediterranean, Western Desert and Nile Delta regions with investments of $139.2 million, and grants of $55 million for drilling 15 new wells. Moreover, the Egyptian General Petroleum Corporation signed a new petroleum agreement on July 30, with the British Company BP to explore and produce oil and gas in the northeast of Ramadan in the Gulf of Suez with investments of about $46 million, in addition to a $4 million grant to drill three wells. In July, the Petroleum Ministry signed three agreements for oil and natural gas exploration and production in North Sinai and the Gulf of Suez. The first agreement was signed with South Valley Egyptian Petroleum Holding Company (Ganope) and Britain’s GHP Corporation to dig six new wells in the western Gebel El-Zeit Concession with total investments of $6 million. Gebel El-Zeit is an isolated, elongate mountain that reaches up to 457 meters and overlooks the southern end of the Gulf of Suez. The second agreement was inked with the Egyptian General Petroleum Corporation (EGPC) to search for oil in Ras Fanar Concession in the Gulf of Suez, while the third one was signed with EGPC and Britain’s Perenco Oil and Gas Company for exploring in North Sinai maritime concession. Egypt’s production of natural gas increased in December 2017 to reach 3.4 million tons, up from 2.7 million tons in December 2016. Egypt’s gas production currently stands at 5.5 billion cubic feet a day, after adding some 1.6 million cubic feet as a result of starting production from the aforementioned projects. The country’s total natural gas consumption is about 6 billion cubic feet per day, of which roughly 65 percent goes to the electricity sector.