opportunities & challenges - amcham egypt inc · 2015-05-12 · lpg/ propane / sulphur/ sales...

American Chamber of Commerce

Opportunities & Challenges

Egyptian General Petroleum Corporation

Cairo, December 3rd 2014

Egyptian General Petroleum Corporation

• An economic State Corporation affiliated to the Ministry of Petroleum.

• It was established under the law

no. 135 of 1956 which was amended by law no. 167 of 1958, then by law no. 20 of 1976.

2

EGPC Main Activities

Agreements

Exploration

Production

Refining, Processing

& Manufacturing

Supply & Distribution

Upstream Downstream

Trading

3

EGPC & Affiliated Companies

Refining & Processing Drilling Engineering , Construction & Fabrication Maintenance Training

Investment Law Companies

160

Public Sector Companies 12

Joint Venture Companies 44

Exploration Production Refining Processing Transportation Distribution

Exploration, Development & Production

4

Agreements & Exploration

5

Effective Agreements Nov. 2014

45 Exploration

13 Exploration & Development

104 Development

162 Total Agreements

6

• During the period 2010 - 2012 no agreements

were signed.

• Through 2013/2014 , 36 new agreements were

signed with total minimum Committed

Expenditure $2 bn.

• 20 other agreements are under procedure with

total committed investment of about $2.1 bn.

Concession Agreements

7

Upstream Partners

bp ( U.K )

RWE-Dea ( GERMANY )

AGIP ( ITALY )

KRITI ( GREECE )

B.G ( U.K )

SHELL ( NETHERLAND )

GAS DE FRANCE ( FRANCE )

INA-NAFTE ( CROATIA )

TOTAL (FRANCE )

BURREN ( U.K )

LUKOIL ( RUSSIA )

HBSI ( TUNISIA )

KUWAIT ENREGY ( KUWAIT )

TRI OCEAN ( KUWAIT )

GUJARAT STAT ( INDIA )

TRANSGLOBE ( CANADA )

MENA ( CANADA )

MEDITERRA ( CANADA )

SIPETROL ( CHILI )

Nationalities (20)

APACHE

IPR

American (3)

European (21)

EDISON ( ITALY )

VEGAS ( GREECE )

CEPSA ( SPAIN )

PETROCELTIC ( U.K )

PERENCO ( U.K )

AMINEX ( U.K )

NAFTO GAS ( Ukraine )

DANA ( U.K

ENQUEST ( U.K )

ENERGEAN ( GREECE )

ANWAR AKKAD SONS ( SYRIA )

DANA GAS ( EMIRATES )

VEGA ( EMIRATES )

GAS RAS EL KHEMA ( EMIRATES )

AL THANI INVESTMENT ( EMIRATES )

DRAGON OIL ( EMIRATES )

NORTH PETROLEUM (CHINA)

Total Operating Companies (50)

Egyptian (11)

NPC

SAHARA OIL & GAS

GANOPE

EGPC

GPC

GHARIB

PETZED

PICO INT.

TRIDENT

MASAWA

THARWA

MERLON

Others (15)

8

Exploration 22%

Development 2%

EGPC & EGAS 2013 Bid Round

(Under Processing)

2.3%

Basement 12.5%

Natural Protectorates,

Ports & Shipping Parks Areas 12.3%

Remaining 48.9%

( ~1,200,000 KM2 )

Exploration = 262,816.57 KM2

Development = 24,584.53 KM2

Distribution of Exploration & Development Activities in Egypt

9

EGPC Development & Exploration Areas

10

Production

11

OBAYIED

FALAK UM BARKA W.TUT TUT

S. UM BARAKA SALAM

KHALDA HAYAT

SAFIR YASSER

ZAHRA BARDY

EMRY DORRA

AMAN

TAREK

KARNAK

M. SE

JASMIN MELEIHA

LOTUS N.RAZZAK

KANAYES YIDMA

RAS KANAYES

EL HAMRA ALEXADRIA

S. DABAA

BED-1

BED-4

BED-2

BED-3

SITRA-5

SITRA-1&3

BED-15

HORUS N. ALAMEIN

ALAMEIN E. RAZZAK

AGHAR

ABU GHARADIG

N. ABU GHARADIG NE ABU GHARADIG

ABU SENNAN GPC

WD-33

WD-33/1

WD-19

W. QARUN

QARUN

CAIRO

BENI SUEF

BENI SUEF

MINYA EASTERN

DESERT

ASYUT

SOHAG

SAFFRON SIMIAN

SCARAB

ROSETTA

ABU QIR

N. ABU QIR

W. ABU QIR

ABU MADI

W. ABU MADI

NW QARA BALTIM

N. BALTIM

SETH

EL WASTANI

HAPY

EL TEMSAH

DISUQ

KHILALA

E. DELTA QANTARA

TANTA

SINAI

SETTI

WAKAR & KERSH

PORT FOUAD TAO

MANGO

THEKAH KAMOSE

N. DARAG

WARDA

RAHMI

N. AMER

BAKR

W. GHARIB

RAS GHARIB EL AYUN

UM EL YUSER

KAREEM KHEIR SHUKHEIR

GS 365-373 AMAL

SIDKI

E. ZEIT GAZWARINA

ZEIT BAY RAS EL ESH

RAS EL BAHAR

GEMSA

GEMSA SE

GEISUM E. MALLAHA

RABEH

WADI SAHL

HURGHADA

SUDR

MATARMA

ASL

N. OCTOBER-183

RAS BUDRAN OCTOBER

ABU RUDEIS

SIDRI FEIRAN

BELAYIM M. BELAYIM L.

GS-300

JULY RAMADAN

BADRI MORGAN

NESSIEM YOUNS

WLAI GARA M GH -375

SHOAB ALI

HILAL

ASHRAFI

TAWILA

FELEFEL

HAREED

MATRUH

MEDITERRANEAN SEA

WESTERN

DESERT

32o

00’

30o

00’

28o

00’

26o 00’ 28o 00’ 30o 00’ 32o 00’

GS-327 EDFU

SAKARA

GS-277

AMER

RAZZAK

EL KING

A. SIR EL MAX

TINEH

OIL FIELDS GAS FIELDS

N

OZORIS & EL QASR

FAHD ASAD

ZARAF

TINNIN

SORS SAFAIR

N. EDCO

ROBY EL BAHIG

EMERALD

ALEXANDRITE

SELKET ELMANSOURA

BATRA S. MANSOURA

SHERBIN

GELGEL

AMANA

KARAMA

HARUN

THALAB

FLOWER

FAYOUM

M. NE

GAWAHER

BAHGA

BURQ

MAGD

GHARD

RANA

SHAHD

DIKIRNIS

E.RAS BADRAN

FERDAUS

MUZHIL

SIDI RAHMANI

AL HAMD

Oil and Gas Fields

12

Oil, Condensate and Gas Average Daily Production

M BBL/D

0

100

200

300

400

500

600

700

800

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

Oil Condensate

641 626

622 638 674

663 670 684 673 673

BSCF/D

5.5 5.9 6.0 6.0 5.9 5.7

4.8 5.0 5.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

Gas

13

Oil, Condensate and Gas Annual Production

MM Tons

26.3 28.1 27.6 28.3 28.7 28.8 29.2 30.5 30.0 28.7

5.3 5.2 5.1 5.0 4.7 4.2 3.8 3.9 3.9 3.9

42.3 45.3 47 46.2 45.8 44 39.1

43.4 43.4 43.4

73.9 78.6 79.7 79.5 79.2 77

72.1 77.8 77.3 76

0

10

20

30

40

50

60

70

80

90

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17

Oil Condensate Gas Total

14

Oil and Condensate

Western Desert 51.2%

Gulf of Suez

20.2%

Delta 1.2%

Sinai 10.3%

Upper Egypt 0.1%

Med. Sea 5.4%

Eastern Desert 11.6%


Gulf of Suez

31.8%

Eastern Desert 12.4%

Sinai 6.5%

Med. Sea

21.2% Delta 0.9%

Upper Egypt 0.6%

Production Reserves

15

Gas


Gulf of Suez 6.8%

Eastern Desert 0.4%

Sinai 0.1%

Med. Sea

75.8%

Delta 5.5%

Delta 7%

Western Desert

25%

Suez Gulf & Sinai 2%

Med. Sea 66%

Production Reserves

16

Refining

17

Refineries

Alexandria

5 MMTON

Amereya

4 MMTON

Midor

5 MMTON Tanta

2 MMTON

Suez

3 MMTON

El Nasr

6.5 MMTON

Mostorod

8 MMTON

Assiut

4.5 MMTON

MMTon Total Capacity 38 Operating Capacity 33 Strategic Capacity at Cairo (Mostorod-Tanta) 3 at Nasr 2

18

Consumption & Distribution

19

Petroleum Products and Gas Consumption

2013/2014

Natural Gas 37.5

LPG 4.2

Gasoline 5.9

Kerosine 0.6

Gasoil 12.8

Fuel Oil 10.5

71.5 MMT

20

Total Consumption

64.2 66.1 69.8 71.2 70.9

76.3 77.56 81.97 82.8

0

10

20

30

40

50

60

70

80

90

09/10 10/11 11/12 01/12 13/14 14/15 15/16 16/17 17/18

Gasoline Gasoil Fuel Oil Gas LPG total

MM Ton

21

Electricity 2750 57%

Industrial 1337 28%

Residential 168 3%

Car Supply 48 1%

Petroleum 532 11%

Average Daily Consumption by Sector 2013/2014

4.8 BnSCF

Gas

Tourism 3.6

28%

Agriculture 0.8 6%

Roads & Constructions

0.9 7%

Industrial 3.1

24%

Transportation 3.6

28%

Electricity 0.3 2%

Petroleum 0.6 5%

12.8MMT

Gas Oil

Manufacturing 2889 28%

Transportation 360 3%

Electricity 7143 68%

Petroleum 108 1%

10.5 MMT Fuel Oil

22

National

2212

International

& Regional 775

Total Number of Stations 2987

Retail Outlets

23

Oil & Gas Challenges and Opportunities

25

Crude Oil & Petroleum Products 10000 Km

Pipelines Network Upstream & Downstream

National Gas Grid 12000 km (High/ Medium/ Low Pressure)

Polyethylene 25000 km (less or equal to 7 bars)

24

Subsidy Evolution

Bn LE

63

90

114

128 126 130

0

20

40

60

80

100

120

140

10/09 11/10 12/11 13/12 14/13 15/14

100

30

26

103 57%

Revenues to Cost

Revenues to International Prices

Actual Payment to Revenues

Bn LE

Value in International Prices

53 Costs

19 Actual Payments

30 Revenues for Local Prices 18%

Actual payment to International Value

Subsidy Value, Costs, Revenues

29%

63%

1st Quarter 2014/2015 Actual July- Sept. 2014

27

Subsidy by Product Actual July – Sept. 2014

Product Quantity M Tons

Unit Selling Price

LE

Cost

LE

LPG Cylinders 940 Cylinder 8 67

Gasoline 92 740 Liter 2.6 5.8

Gasoline 80 880 Liter 1.6 3.8

Gas Oil 3100 Liter 1.8 4.9

28

Debtors Bn LE Creditor Bn LE

Electricity 37.9 IOCs 36.2

Others (Egypt Air, Transportation,…..)

9.4 Suppliers (Crude Oil & Products)

16.9

Ministry of Finance 99.8 Petroleum (Holding Companies, Investment Companies,

Public Sector)

32.5

Governmental Sector 137.7 Loans and Credit Facilities 47.3

Other Customers 15.4

Total Dues to EGPC 162.5 Total Dues on EGPC 132.9

Receivables & Dues Sept. 2014

+LE 29.6 Bn

29

IOCs Arrears

0.61 0.53

1.55 1.12

1.33

3.17

6.31

5.4

6.4

4.9

04

/05

05

/06

06

/07

07

/08

08

/09

09

/10

10

/11

11

/12

12

/13

13

/14

Sep

t.2

01

4

14

/15

Billion US $

January 2011 Revolution

30

1.4 1.5 1.6 1.8

2.0 2.0

4.8 3.6 3.8 3.8 3.6

4.3

6.78

5.51 5.91

6.27 6.31 6.9

8.5

0

1

2

3

4

5

6

7

8

9

08/09 09/10 10/11 11/12 12/13 13/14 14/15

Operation Development Exploration Total

IOC’s Investments

$Bn

31

Strategy & Way Forward

32

1- Bridge the Gap between Supply & Demand over 5 years

• Gas and Products Imports.

• Accelerating Repayment of IOCs Arrears.

• Signing Upstream Agreements and Issuing Upstream

Bid Rounds.

• Agreeing New Upstream Gas Prices.

• Developing Unconventional Resources.

• Accelerating Field Development Projects.


33

2- Expanding and Upgrading Oil and Gas Infrastructure & Retail Network

• Upgrading refining capacities to satisfy growing local demand.

• Expanding and upgrading Pipelines Networks to Facilitate

Crude Oil & Products Movements and Maneuverability and

Improve Efficiency.

• Increasing terminal & storage capacities throughout the country.

• Increasing number of Retail Outlets.

• Encouraging Private Sector Participation.


34

Refining & Processing Ongoing Projects

ANRPC

CCR Project

To produce: 490 MT/ Year Reformate

Investment Cost $200 MM

Expected at 2018

Midor

Refinery Expansion Project

Feed Capacity: 60M bbl/day

Investment Cost $1132 MM

Expected at 2018

Assiut Refining Co.

CCR& Isomerization Project

To produce: 606 MT/Year

High Octane Gasoline

Investment Cost $ 250 MM

Expected at 2018

ERC

Hydrocracker Complex

To produce: 4.2 MMT/Year

LPG /Jet Fuel/Gasoline/

Gas Oil/Coke Sulphur


Expected at 2017

Suez Oil Processing Co.

Vapour Recovery Unit Project

To produce: 48 MT/ Year LPG

Investment Cost $ 36.5 MM

Expected at 2017

SRPC

New Oil Refinery for Heavy Crude Oils

To produce: 12 MMT/Year

LPG/ Propylene/ Naphtha/ Gasoline

/Jet Fuel/ Gas Oil/ Fuel Oil/ Sulphur


Expected at 2018-2020

Sonker

Construction of New Storage Capacities

3 LPG tanks with Total Capacities 150 M m3

3 Gas Oil Tanks with Total Capacities 100 M m3

Investment Cost $ 300MM

Expected at 2017

Kuwait Gas & Oil Co./GPC

Associated Gas Treatment Project

Feed: 15 MM SCFD

LPG/ Propane / Sulphur/ Sales Gas/ Condensate


Expected at 2016

Assiut Refining Co.

Vapour Recovery Unit Project

To produce: 122 MT/Year LPG


Expected at 2016


New Asphalting Unit

To produce: 1200 T/ day Asphalt 60/70


Expected at 2017

Total

Investment

$10.5 Bn 35

Refining & Processing Planned Projects


New Coking Complex Project

Feed Capacity :5.2 MMT/Year Fuel Oil

To Produce: Gases/ LPG/ Naphtha /

Kerosene / Gas Oil / Coke / Sulphur

Investment: $ 3500 MM


New Lube Oil Complex

Feed: 660 M T/Year Fuel Oil

To Produce: 120 MT/Year Basic Oils


.Refining CoOil Assiut Hydrocracker Complex Project

Feed Capacity: 2.3 -2.6 MMT/Year

Fuel Oil

To Produce: LPG/ Naphtha /Gas Oil

/Gasoline/ Jet Fuel / Fuel Oil


New Distillation Unit

Feed Capacity : 5 MMT/Year Crude

To Produce: LPG/ Naphtha /Gas Oil

Fuel Oil

Investment: $ 250MM

New Asphalting Unit

Feed Capacity : 440MT/Year

To Produce: 800 T/ day Asphalt 60/70

Investment: $ 35MM

Total

Investment

$7.1 Bn 36

Crude Oil & Petroleum Products Pipelines Network

Proposed, Planned & Ongoing Projects

Project Situation Execution

Period (year)

Estimated Investment Cost

($ MM)

Sokhna -Tebeen Fuel Oil /Gas Oil pipeline 110 km /24"

Ongoing 3 168

Tebeen - Helwan Fuel Oil pipeline 83 km /16"

Ongoing 3 30

Sokhna -Hafayer- Wadi Hagul Crude Oil pipeline 41 km / 30"

Ongoing 3 32

Duplication Shoker -Assiut LPG pipeline 70 km / 10"

Proposed 3 38

Assiut - Sohag LPG pipeline 110 km / 10 "

Planned 3 36

Sohag-Aswan Product Pipeline 500 km / 14"

Proposed 3 201

37

3- Demand Side Management and Subsidy Reform

• Adopt a Comprehensive Strategy for Energy Subsidy Reform.

• Diversify Egypt’s Energy Mix to be more Sustainable.

• Establishment of an Independent Regulator for Oil and Gas Responsible for:

o Subsidy Calculations.

o Market Regulations.

o Regulations for Usage of Infrastructure.

• Develop our Human Resources.


38

Smart Card Implementation Plan

Phase 2 & 3

Phase 1

Total number of stations working by Smart Card till now 224 Stations.

Total number of Smart Cards distributed till now 2.5 MM Cards.

• Port Said Governorate (completed Successfully)

• Expansion through all governorates

Effective Start Governorates

Feb 2015 Nov 2014 Ismailia, Suez, Red Sea, Demiatta, Luxor, Aswan & Qena.

March 2015 Dec 2014 Alexandria, Matruh, Faiyum, Minya, Sohag, Assiut, Al Wady Al Gadeed.

April 2015 Jan 2015 Cairo, Giza, Qalyubia, Dakahlia, Gharbia, Kafr El Sheikh, Monofeyah, Beni Sueif.

April 2015 Feb 2015 Sharqeyah, Beheirah, North Sinai, South Sinai.

Monitoring Fuel Transportation & Terminals

39

Thank you

opportunities & challenges - amcham egypt inc · 2015-05-12 · lpg/ propane / sulphur/ sales...

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