The Egyptian oil and gas industry, a vital component of the nation’s economy, is undergoing a significant transformation fueled by digitalization and artificial intelligence (AI). As the world increasingly recognizes AI’s potential to revolutionize various sectors, Egypt is actively exploring its applications within the oil and gas value chain. From upstream exploration and production to downstream refining and distribution, AI is being leveraged to enhance efficiency, reduce costs, and ensure safety.
Digitalization and AI for Enhanced Oil Recovery
The world and Egypt are increasingly interested in exploring the potential of artificial intelligence (AI) to revolutionize the oil and gas industry. From exploration and production (upstream) to refining and distribution (downstream), AI is being investigated for its ability to improve efficiency, reduce costs, and enhance safety.
Using AI and machine learning in the Egyptian oil and gas upstream sector can help companies enhance production and boost efficiency, while also ensuring safety of employees. Minister of Petroleum and Mineral Resources, Karim Badawi, is encouraging oil and gas exploration and production companies to accelerate their use of digital technology, especially artificial intelligence, to increase production rates. The minister is emphasizing the potential of these technologies to maximize the value of older wells and fields, as well as to identify new development opportunities through drilling new wells and optimizing water injection operations for enhanced oil recovery. This comes as AI can enhance oil recovery, ensuring production continuity and supporting sustainable operations in the Egyptian petroleum industry.
Meanwhile, the Ministry of Petroleum and Mineral Resources (MoPMR) has launched the Egypt Upstream Gateway (EUG) to digitally attract oil and gas investments for exploiting petroleum resources in Egypt to meet the state’s needs and supporting the economy growth. For instance, in September 2024, the EUG has held a workshop aimed to promote and market a recent international bid round launched by the Egyptian Natural Gas Holding Company (EGAS) through the gateway. The tender includes 12 onshore and offshore blocks for natural gas exploration in the Mediterranean Sea and the Nile Delta.
Midstream and Downstream Digital Tools
The MoPMR is further working on the digital transformation of the midstream and downstream sector. According to the Modernization Project, pillar 7, the part related to decision support and data flow, the ministry has started commissioning of Enterprise Resource Planning (ERP) system for two EGPC affiliate refineries and continued the completion of implementation in the remaining affiliate refineries. The ministry is working to establish an integrated ERP system to manage petroleum sector resources and assets; and to support decision-making process, taking into account the integration of existing industrial systems in oil and gas industry.
Meanwhile, the first electronic system for managing and tracking butane gas distribution was implemented to improve control over supply. Additionally, a control room with advanced digital systems, including linear programming, was established to monitor refinery operations.
The ministry is also keen on applying digital systems to monitor supply. On October 3rd 2024, it was reported that, in terms of Automatic Tank Gauging (ATG), 3595 stations have been connected, and the implementation and installation of the system for the remaining stations is currently being completed. The ATG works by installing a device in the underground tanks at stations to measure the quantities of fuel and send them to a control room at the station and measure the percentage of water in the tanks.
The Egyptian oil and gas industry’s embrace of digitalization and AI marks a significant step towards enhancing efficiency, sustainability, and competitiveness. By leveraging advanced technologies across the value chain, from exploration and production to refining and distribution, Egypt is positioned to optimize its petroleum resources and support economic growth. The successful implementation of initiatives such as the EUG and the integration of digital systems in midstream and downstream operations demonstrates the country’s commitment to harnessing the power of digital transformation AI for a more robust and sustainable energy future.
