Could you tell us a little about the significance of Egypt assets for Neptune Energy today?

Our Neptune Energy portfolio in Egypt includes the Northwest El Amal exploration concession offshore in the Gulf of Suez, which is a 100% Neptune-operated block and where we are preparing to drill our first exploration well, Yakoot-1X. We also hold a non-operated interest in the producing asset, Alam El Shawish South West (AESW) in the western desert.

Our 100% interest in North West El Amal (NWEA) represents many exciting firsts for Neptune and Egypt: it is the first operated activity in Egypt for Neptune and will also be the first well to be drilled on the newly-acquired and processed OBN seismic data in the Gulf of Suez. We acquired the license in late 2019 and have been very busy since, working up to drilling the well which will happen early next year.

What are the latest updates for your operations in Egyptian fields?

I believe that the Yakoot 1X well will be the catalyst for reframing further exploration, not only within our own operated block but also in the Gulf of Suez.

We are absolutely focused on drilling preparations and the safe execution of this very important well. We have more than doubled the size of our organization in the last three months to support this, and we expect to spud the well early next year.

We are working closely with our partners in AESW to optimize gas and oil production, including drilling of infill wells, waterflood optimization, identifying workover activities, and evaluating exploration opportunities.

Neptune Energy has joined global initiatives to cut methane emissions. How far did you go in this regard?

Neptune operates in 7 countries around the world, including Egypt and Methane makes up 7% of our total GHG emissions on a CO2e basis. Our methane intensity, which refers to emissions from our managed operations as a percentage of gas exported, was 0.02% last year and we remain on track to reach our target of net zero methane emissions in 2030. We’ve also set an interim target of 0.015% by 2025. We were awarded ‘Gold Standard’ status for our reporting to the Oil and Gas Methane Partnership 2.0 framework in 2021, and this recognized our robust plans to report and reduce methane emissions for our operated and non-operated assets by 2024 and 2026, respectively.

At the COP26 summit in Glasgow, cutting methane emissions was recognized as the most effective way to limit near-term climate change. That’s because the gas, though short-lived in the atmosphere, retains more than 80 times more heat than CO2 over a 20-year timeframe. There are a number of important global initiatives we participate in which aim to support that objective, and Neptune has been highlighted for its industry-leading performance in tackling methane emissions associated with our operations.

Does Egypt have any role to play in such initiatives?

Absolutely, and Egypt has been a very strong voice on the global stage, recognizing the urgent necessity to tackle methane emissions. H.E El Molla deserves much credit for setting out ambitious plans to cut GHG emissions from the sector.

The country is making some great strides in reducing emissions, including the flare recovery project at the APC Refinery in Alexandria. That’s one of Egypt’s Nationally Determined Contributions which directly supports the objectives of the Paris Agreement, and contributes to the Global Methane Pledge which Egypt endorsed at the last COP summit.

Neptune Energy has recently been awarded the gold medal status from the environment, social, and governance (ESG) rating organization, EcoVadis. How did the company obtain such a prestigious award?

We have stated our 2030 ambition to store more carbon than is emitted from our operations and the use of the products we sell. We know that our ESG strategy is key to our ability to create value for all of our stakeholders, so we’ve set out actions to ensure we operate and produce energy in a safe, sustainable and responsible way.

We are very proud that EcoVadis placed Neptune in the top 5% of all 95,000 global companies assessed by the organization. They have recognized our strong environmental management practices and comprehensive labor and human rights policies and procedures, which is a great endorsement of our efforts.

In this regard, what are your plans for the Egyptian fields’ sustainability and environmental wellness?

We support the ongoing endeavors of the AESW operator to reduce emissions in operations and reduce the environmental impact. This has been a multi-year investment program of which this first phase is nearing completion. There is more we can do and we will continue to progress these opportunities with our partners.

We are also mindful of our own operating footprint in Egypt. We are currently working to achieve ISO 45001 certification (Health and Safety Standard) and have ambitions to expand this to environmental certifications such as ISO 14001 and ISO 50001 in the future, reflecting our commitment to proactively identify and implement opportunities to further enhance our environmental profile.

We have a strong track record globally for high local content participation; in Egypt this is no different where we employ a team of Egyptian staff and technical specialists and we expect nearly 100% local content for the delivery of Yakoot 1. This supports local jobs and the local economy, not just here in Cairo but also further afield in Ras El Gharib, Alexandria, and Hurghada areas.

We also support local NGOs and initiatives, such as the recent rebuilding of the Khor Awada village in Aswan following extreme flooding in the area.

In the midst of the world’s struggle for energy transition, what role can Egypt play?

The challenge for Egypt – and indeed the globe – is to balance the need for affordable energy with transitioning to a lower-carbon world. We cannot focus on one at the expense of the other. I think that is very well understood by the government and institutions here in Egypt. The country is making significant investments in new gas fields in the Eastern Mediterranean, and in renewable energy. It’s a “managed energy transition” and should see about 40% of the Egyptian economy based on renewable energy by 2035.

Egypt can be an exceptionally positive role model for the rest of the world, and it has the ideal opportunity to demonstrate this when it hosts COP27 in Sharm El-Sheikh this November.

Previously, you have been assigned the role of Neptune Energy UK’s Managing Director, not to mention your vast experience in Shell, Equinor, and Tullow. What difference can this experience make for operations in Egypt, and how far do you find Egypt operations challenging?

I feel extremely privileged to be given the opportunity to both lead the Neptune organization here in Egypt at this important time, on the one hand drilling a hugely strategic well for our company and for the country, and also being here in the run-up to COP27 when all eyes will be on Egypt.

I have had a very warm welcome and I am genuinely excited to be here. I am very proud of our Neptune Egypt team of top Egyptian technical professionals who will deliver this well safely and successfully. Egypt has a well-established energy sector and there is a wealth of talent and expertise here. This has been a big enabler for Neptune to be able to ramp up activity here so quickly, in the wake of the Covid pandemic.

What is your outlook for the Egyptian oil and gas sector at the moment?

The Egyptian oil and gas sector has a strong future ahead of it. It is well-placed to be an example to other countries around the world and Egypt leading and hosting COP27 demonstrates this very clearly. The focus the Ministry of Petroleum and Mineral resources has placed on the Energy transition, the importance of gas, and preparation for the global hydrogen economy, as well as renewable energy sources, is commendable. I believe other countries can learn much from Egypt in this regard.

I also appreciate the focus H.E. El Molla has lent to STEM education and the importance of gender diversity in our sector so that we can collectively ensure we secure the best people to participate and lead the energy transition in Egypt in the coming years.