Over the last few years there has been a resurgence in Egypt’s upstream sector boosted by several offshore gas discoveries, most notably the Zohr.
The Zohr, made by Eni in August 2015, is the largest gas discovery ever in the Mediterranean, and the first phase of production there is set to begin late in 2017, and by the time the full development is online, it will make the country a net energy exporter.
With all the gas from discoveries made by the likes of BP and Eni, Wood Mackenzie expects the country’s gas production to rise 80-90% from the lows seen in 2016.
This has already had an impact on Egypt’s imports, with the country deferring a number of LNG cargoes this year, and Egypt might soon release one of FSRUs moored in the Gulf of Suez next year. FSRUs are floating units used for the import of liquefied natural gas. Once loaded into an FSRU from an LNG tanker, LNG is regasified and transported to the local market.
To learn more about the upsides, downsides, and the outlook of Egypt’s oil and gas sector tune in into the podcast above, where Stephen Fullerton, Wood Mackenzie’s upstream Egypt analyst, and Martijn Murphy, Upstream North Africa Research Manager, discuss the main drivers behind Egypt’s upstream renaissance.