exploitation in egypt - cfo ravennacforavenna.com/archivio/58/egpc-presentation... · 3- legal...

MOSTAFA ELSHAZLY

Attorney at law- Petroleum Agreements Dep.

The Egyptian General petroleum Corporation

Email: [email protected]

MAIN FEATURES OF THE REGULATORY

FRAME WORK FOR PETROLEUM

EXPLOITATION IN EGYPT

1 NORTH AFRICA OIL AND GAS SUMMIT- MILAN 2017

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Content

1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum Exploration and

Exploitation.

3- Legal Framework For Petroleum Exploitation in Egypt

4- Key Provisions of Production Sharing Agreements (PSAs) in Egypt.

5- EGPC efforts to attract investment in the Egyptian upstream sector.

6- Challenges and Opportunities

2- The Egyptian petroleum sector structure.

NORTH AFRICA OIL AND GAS SUMMIT- MILAN 2017

3

Content

1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum

Exploration and Exploitation.







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1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum Exploration and Exploitation.

Some states ‘mix and match’ different features of the four principal types of Host Government Contracts to ‘blended flavors’. (e.g. North Alex Model Agreement for petroleum exploration and exploitation).

It is also possible to have a Hybrid Contract.

Joint Venture PSA Service Concession

(A) Host Governments E&P Contracts


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1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum Exploration and Exploitation.

Agreement Type Right To Explore

Private

Shared

State

Concession

Joint Venture

Production Sharing

Service Contract

Ownership of Production

Shared

Private

Shared

Shared

State

(A) Host Governments E&P Contracts


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1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum Exploration and Exploitation. (B) NOC`s and IOC`s Perspective

Greater G

overnment Control

Maximum Return & Incentive to Contractor

Moderate Return & Incentive to Contractor

Minimum Return & Incentive to Contractor


High

er R

isk

for I

OCs

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1- Overview the basic Fiscal Regimes adopted by NOCs for Petroleum Exploration and Exploitation. (B) NOC`s and IOC`s Perspective

Source: Baker & Mckenzie: Comparative Analysis of Host Government Granting Instrument. NORTH AFRICA OIL AND GAS SUMMIT-

MILAN 2017

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Content


Exploitation.







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Content


Exploitation.







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2-The Egyptian Petroleum Sector Structure


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2-The Egyptian Petroleum Sector Structure EGPC STRATEGIC OBJECTIVES


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Content


Exploitation.







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Content


Exploitation.







3- Legal Framework For Petroleum Exploitation in Egypt.

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-Natural resources belong to the people.

-The state commits to preserving such resources, to their ideal exploitation. -The state works on encouraging the manufacture of raw materials,.

-Increasing their added value according to economic feasibility.

The state protects ownership. May not be confiscated except for the public interest and with just compensation that is paid in advance as per the law.

Private sector social responsibility The state encourages the private sector

to perform its social responsibility in serving the national economy and society.

(A) 2014 CONSTITUTION



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(B) E&P Agreements Overview


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Content


Exploitation.







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Content


Exploitation.







4- Key provisions of Production Sharing Agreements (PSAs) in Egypt.

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GOVERNMENT EGPC IOC

KEY PROVISIONS

BONUSES AND TAXES GRANT OF RIGHTS AND TERM

MINIMUM WORK PROGRAM

RELINQUISHMENT

COMMERCIAL DISCOVERY

Production Split and Cost Recovery

STABILIZATION

FORCE MAJEURE

DISPUTE RESOLUTION

ASSIGNMENT JOINT OPERATING COMPANY

LOCAL CONTENT

PARTIES


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Content


Exploitation.







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Content


Exploitation.







5- EGPC efforts to attract investment in the Egyptian upstream sector

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PRODUCTION SHARING SYSTEM

NO DISCOVERY

DISCOVERY

CONTRACTOR BEARS ALL

EXPLORATION RISKS

COST RECOVERY +

PRODUCTION SHARING

Cost Recovery Cost recovery ceiling

Bidding limit

Profit Oil or Gas

Contractor

Excess EGPC & Contractor


EGPC & Contractor


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(A) Operating Companies and Partners.

APACHE IPR

MERLON

SHELL AUSTRIA ( AUSTRIA ) GREYSTONE ( SWITZERLAND ) CIRCLE OIL Egypt ( IRELAND )

ENGIE ( FRANCE ) TOTAL ( FRANCE ) VEGAS ( GREECE ) ENERGEAN ( GREECE ) NAFTO GAS ( Ukraine ) SHELL ( NETHERLAND ) Dea ( GERMANY ) INA-NAFTE ( CROATIA ) LUKOIL ( RUSSIA )

THARWA SAHARA OIL & GAS

GANOPE

EGPC GPC NPC

PICO INT. TRIDENT MASAWA

BP ( U.K ) BG ( U.K ) PERENCO ( U.K ) AMINEX ( U.K ) DANA ( U.K ) PETROCELTIC ( U.K ) BURREN ( U.K ) eni ( ITALY ) EDISON ( ITALY ) CEPSA ( SPAIN )

TOTAL OPERATING COMPANIES and PARTNERS (58), NATIONALITIES (27)

SIPETROL ( CHILI ) DANA GAS ( EMIRATES ) VEGA ( EMIRATES ) GAS RAS EL KHEMA ( EMIRATES ) DRAGON OIL ( EMIRATES ) NORTH PETROLEUM “NPIC”( CHINA )

HBSI ( TUNISIA ) KUWAIT ENREGY ( KUWAIT ) TRANSGLOBE ( CANADA ) MENA ( CANADA ) MEDITERRA ( CANADA ) SEA DRAGON ( CANADA )

QUADRA ( CANADA ) ODYSSEY ( CANADA ) DOVER ( CANADA )

BEACH ( AUSTRALIA ) OIL SEARCH ( AUSTRALIA )

TEIKOKU ( JAPAN ) SOJITZ ( JAPAN )

KUFPEC ( KUWAIT ) PETRONAS ( MALAYSIA )

SINOPEC ( CHINA )

OCEANEER EL PASO

NORTH AFRICA OIL AND GAS SUMMIT-


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(B) EGPC Agreements (1973 – Jan., 2017)

22870 Minimum obligation (U.S MM$)

2848.3 Signature Bonus (U.S MM$)

1597 Minimum number of wells

Total Agreements 433



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( C ) Start E&P Business in Egypt

INTERNATIONAL BID ROUND FOR PETROLEUM EXPLOIATION. - Announcement For International Bid

Round.

- Bidding Procedures.

- Main Contract Terms and Conditions.

- Technical Report Exploration Blocks.

•FARM IN / FARM OUT current existing PSA

- Fulfilling all commitments in the

PSA.

- Technical and financial capability.

- Approval by the MOP required.


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Content


Exploitation.







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Content


Exploitation.







Challenges and Opportunities

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( A ) CHALLENGES

The development of Unconventional resources.

Encouraging investment in deep and ultra deep

targets in all areas (e.g. Mediterranean,

Western/Eastern Desert, Nile Delta and Gulf of

Suez).

A comprehensive legal frame work to stream line

Bid round processes.


Challenges and Opportunities

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( A ) OPPORTUNITIES

The New Discoveries in the Mediterranean.

The New Gas Law.

Varieties over the applied fiscal regime.


Contacts

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For further information, please contact: Dr. Geologist / Deputy Chief Executive Officer for Exploration and Agreements supervisor:- • Tel. : (202) 27065227 (202) 27065358 • Fax : (202) 27065207 (202) 27065887 • E-mail : [email protected] • Website: www.egpc.com.eg


mailto:[email protected]

http://www.egpc.com.eg/

exploitation in egypt - cfo ravennacforavenna.com/archivio/58/egpc-presentation... · 3- legal...

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