Eni’s discovery in the Zohr field has been recognised as a global energy game changer; though there are some doubts surrounding the discovery’s current forecasts as some believe that they were overly optimistic and there still remains some question on whether it will convert the country into a regional gas hub due to the steep increase in local energy demand.
Further efficiencies in projects for the benefit of both, IOCs and Egypt, can be achieved if there was less bureaucracy involved to get the best people for the jobs – such as work permits for expatriate specialists – and to get the best available technology into the country through the use of international suppliers. This will result in long-term knowledge transfer.
The current oil price scenario is putting a threat to smaller oil prospects and the ongoing production in ageing fields, which suffers from high OPEX. The structure of the current concession agreements can be used, if certain parameters are adjusted, to attract further investments in these fields. This could become a major requirement for Egypt to keep current oil production levels.
Finally, the delayed payments by EGPC and EGAS to the IOCs are still a major concern and prevent players from entering Egypt, even though some progress has been made since the peak of overdues in 2011/12.
Please visit http://nas.theenergyexchange.co.uk/post-event-report/ to view the full North Africa Oil & Gas Summit 2015 / North Africa Downstream Summit 2015 Post Event Report.
(Source: The Energy Exchange / World Refining Association)