As Egypt eyes attracting more investments to the oil and gas sector, the Egyptian General Petroleum Corporation (EGPC) launched a tender in November 2018 for establishing the country's first petroleum exploration and production (E&P) digital data repository. The Egyptian Upstream Gateway (EUG) is a national data bank, which comes as a part of the oil and gas sector’s Modernization project.
The Egyptian oil and gas sector launched the first digital upstream platform, the Egypt Upstream Gateway (EUG), taking a wide step towards the digital transformation of the upstream sector. The EUG was established to be a giant exploration and production (E&P) national data repository that helps the sector accelerate its E&P business and attract investments through launching digital international bid rounds.
In a world that is undeniably digital, the Egyptian oil and gas sector is advancing through the digital transformation program, which comes as the seventh pillar of a modernization project. The program aims to transform the oil and gas sector into one that operates digitally on a wider scope.
During the past few months, Egypt witnessed several discoveries in its desert. This came after giving more attention to exploring the desert. Supporting this plan, the Ministry of Petroleum and Mineral Resources (MoP) has launched an exploration and production (E&P) bid round in February included blocks from the Western Desert. Most of Egypt’s crude production comes from its deserts. According to data released by the MoP, the country produces crude oil from its deserts that equaled 67.5% of its total production until 2019. Thus comes the necessity to keep desert fields a safe workplace and guarantee sustainable production at the same time.
Realizing that energy security and carbon neutrality should be two sides of the same coin, Egypt has linked national development plans, especially those concerning energy transition and energy efficiency (EE), with carbon reduction opportunities. Notably, the move comes within the framework of Egypt’s vision for 2030, which reflects the country’s long-term strategic plan to achieve the Sustainable Development Goals (SDGs).
In May 2021, the Organization of Arab Petroleum Exporting Countries (OAPEC) announced that Egypt has become one of the most growing Arab exporters of liquefied natural gas (LNG) during Q1 2021.
Egypt is blessed with featured geological nature that has allowed it to have different compositions that host various minerals and petroleum resources. The geology of Egypt consists of three layers, according to report issued by University College London. Most of the surface of modern Egypt is covered by a layer of limestone; under this, lies a bed of sandstone. While this sandstone layer is the surface rock in Nubia and southern Upper Egypt. The oldest layer includes outcrops of metamorphic and igneous rocks. The Nile River passes through sandstones and limestones from Sudan to the North of Egypt. These sandstones and limestones are forming the sedimentary rocks from which oil and gas are produced.
Egypt has taken prominent measures to convert vehicles into compressed natural gas (CNG) ones. These steps include the timely presidential initiative launched in January 2021 to increase the number of vehicles using CNG as fuel. The country provides CNG through compressing natural gas to be lower than its standard atmosphere volume pressure by less than 1%. Afterward, the produced CNG is stored at a pressure of 24,821 Kilopascals (kPa), according to the Alternative Fuels Data Center (AFDC). Through the pressuring process, Egypt provides its people with an alternative fuel that will enhance the economy and surrounding environment.
Over the past few years, Egypt has taken proactive constant steps to become a hub for trading and exporting energy. In 2016, a high committee was formed to implement this strategy as a part of Egypt’s vision 2030 for sustainable development. Egypt’s plan to become an energy hub will secure the domestic needs of energy, support economic development, provide more foreign currency and perfectly exploit Egyptian infrastructure. In addition, this strategy will provide more opportunities for investments.
There is an undeniable growing tendency from the government, international companies, and geoscientists to the Western Desert in Egypt. Accelerating trends of Western Desert represent an unprecedented global consensus in the oil and gas industry. This is actually quite typical as conventional oil and gas fields in the Gulf of Suez are nearing maturity and becoming brownfields. Consequently, market players in oil and gas industry have shifted their focus toward the potential of the Western Desert due to its favorable geographical location which covers two-thirds of Egypt.
