Still facing a daunting energy crisis, which has brought immense
pressure to the need for domestic production, Egypt extended a tender
for gas exploration by two months, adding new blocks in the process. This week, Cairo announced that they would extend its tender for
offshore natural gas exploration by two months, adding four new blocks
to those available, totaling 7,934 square miles, according to a Reuters
report.
Under the new criteria, the bidding will now run to July 30,
allowing more time for potential international firms to join the effort
to revive the country’s domestic energy production. Italian major Eni, BP and BG are already active in the area. The extension comes at a time when Egypt continues to struggle to
meet its domestic demand, as well as draw down significant debts to
international producers. Egypt has a long history of energy
challenges, however they have grown especially daunting over the last
four years. With the collapse of the long-standing government of Hosni
Mubarak, the country of over 80 million found itself economically isolated, which served to reduce its foreign reserves and with it, the ability to keep up payments to oil and gas importers.
At the same time, the country’s domestic production has continued to
slow, a situation made worse by a series of attacks on eastbound gas
pipelines to buyers in Israel and Jordan, further reducing needed energy sector revenue. The focus on offshore gas reflects a regional
push for offshore exploration and production, including substantial
efforts on the part of Israel and Cyprus and more modest campaigns from
Lebanon, Greece and Turkey. Egypt has previously announced the potential
for a collaboration with Cyprus to exploit the country’s offshore
potential.
While others in the region have promoted the idea of domestic
production as a way of meeting domestic needs and building towards an
export market – notably providing the rest of Europe with a new avenue
for natural gas that is not Russia – Egypt’s focus appears primarily
local.
The country of over 80 million has seen demand for energy continue to
rise in recent years, making the need to boost local production an
issue of financial and possibly political stability. According to the report, the four new blocks include the Northeast
Habi Marine, North Farma Marine, North Tabiya Marine and Northeast
Amiriya Marine. They will be added to the eight original blocks, including the West Arish Marine, East Port Said Marine, North
Rumana Marine, North Ras al-Ash Marine, West al-Timsah Marine, South
Taneen Marine, North Hammad Marine and East Alexandria Marine.
http://www.forbes.com/sites/christophercoats/2015/05/28/egypt-moves-to-extend-natural-gas-opportunities/2/?ss=energy