opportunities & challenges - amcham egypt inc · 2015-05-12 · lpg/ propane / sulphur/ sales...
TRANSCRIPT
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%
Western Desert 26.5%
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
Western Desert 11.4%
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.
Strategy & Way Forward
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.
Strategy & Way Forward
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
Investment Cost $ 3700 MM
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
Investment Cost $ 4700 MM
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
Investment Cost $ 60 MM
Expected at 2016
Assiut Refining Co.
Vapour Recovery Unit Project
To produce: 122 MT/Year LPG
Investment Cost $ 25 MM
Expected at 2016
Suez Oil Processing Co.
New Asphalting Unit
To produce: 1200 T/ day Asphalt 60/70
Investment Cost $ 50 MM
Expected at 2017
Total
Investment
$10.5 Bn 35
Refining & Processing Planned Projects
Suez Oil Processing Co.
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
Suez Oil Processing Co.
New Lube Oil Complex
Feed: 660 M T/Year Fuel Oil
To Produce: 120 MT/Year Basic Oils
Investment: $ 430 MM
.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
Investment: $ 2900 MM
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.
Strategy & Way Forward
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