In the middle of the current social, economic and political unrests, people are having a close eye on the Egyptian market. Focusing on the petroleum industry, which contributes by 15 % of the national GDP and 45% of total Egyptian exports, more speculations and concerns about the sector’s strategies dominate the scene. Satisfying the current need for in-depth analysis and forecast of the Egyptian petroleum industry, Egypt Oil & Gas presents its latest division the Research & Analysis Department to investigate the market and draw the future scheme

In addition to periodical reports, which utilize comprehensive in-house databases and industry models, the department’s activities include business strategy and analysis services. Information needed for market entry, customer targeting, new products launching, market size gauging, in addition to business plan support are some of the services the department offers.

The department’s latest report; namely, The Egypt Drilling Report 2011 provides an in-depth analysis of the drilling market from various perspectives. This year’s report responds to many ambiguities that dominated the Rig market at large and affected the domestic market. A five-year analysis is provided, during the period from 2005 to 2010, to evaluate the industry operations flow before the eruption of the global economic recession, throughout the recession and during the recovery stage.  The report, among other findings, found that, after a considerable boost in drilling operations in 2007 and 2008, the financial crisis negatively affected operations in 2009. Recovery, however, seemed to have been on the way in the first and second halves of 2010.

The EOG Drilling Report 2011 differs from any other report by the amount of data and studies provided, which are solely focusing on the Egyptian market. A complete comprehensive overview of the drilling operations held from 2005 to 2010, in terms of total wells drilled (per type, per area, per classification), drilling costs and investments in addition to analysis of drilling operators’ activities (drilling activity per company, total wells drilled per company and drilling operators per area). Besides, a special well data section is added to the report that helps clarifying the ups and downs of the drilling operations during the global economic recession through an in-depth analysis and comparison between the fiscal year of 2008-2009 and 2009-2010. The points of comparison include: discovery wells, offshore development wells, onshore development wells, synopsis wells and exploration wells.

The EOG Drilling Report’s second section sheds light on the domestic rig market, through a five-year analysis, from 2005 to 2010. Therefore, various analyses are included to show the market’s rig count per classification (per type, per area, per operator, per contractor) and the average rig rates (per area, per HP, per contractor). Over and above, it contains the main players in the market, whether offshore or onshore. Besides, there will be a special investigation of the rig market during the fiscal year of 2009-2010, which will tackle a summary of rig count reflecting the market status.

Additionally, the EOG Drilling Report 2011 examines the compatibility between the volume of drilling operations and the rates of production. Hence, the production section provides data about the country’s production rates (per area, per year, per operator) in the period from 2005 to 2010.

A forecast of the rig market and production rates over the coming five years are presented in this report as well. This section will include the estimations of the country’s reserves and investment spending.

Throughout the past seven years, the volume of hydrocarbon reserves in Egypt witnessed an average 5% increase per year. This growth is mostly reflected in a considerable increase of natural gas reserves, while the crude oil and condensate reserves have been relatively constant. For instance, in 2008, natural gas reserves constituted of 74% of the country’s recoverable discovered hydrocarbon reserves counted for 2147 million tons on an oil equivalent basis, while the crude oil had a 19% share of this volume and condensate reserves had the remaining 7%.

Over the coming 10 years, from the fiscal year of 2010-2011 to 2020-2021, an increase of approximately 13% of recoverable liquid hydrocarbon reserves more than the current figure is predictable. According to the Egyptian General Petroleum Corporation (EGPC) estimation, the total volume of cumulative crude oil and condensate production is expected to reach up to 4732 million barrels, and an average of 3000 million barrels of recoverable liquid hydrocarbon reserves to be discovered during this forecast period. The results of such discoveries would lead to a decrease of remaining recoverable liquid hydrocarbon to count for approximately 2600 million barrels, compared to the 2008 volume that totaled 4189 million barrels, 70% of which is crude oil reserves.

The findings in this article are a brief sample of the report’s in-depth analysis. For more in-depth information visit or call 02-25164776

By: Aly Salah

Egypt Oil Production 2008-2010

Egypt Natural Gas Production 2008-2010

Total Wells Drilled