The Mineral Resources and Mining Industries Authority (MRMIA) signed a Memorandum of Understanding (MoU) with New Valley Company for Mineral Resources and Oil Clay (Wadico) to cooperate in completing geological, technical, and economic studies to assess oil shale reserves in Egypt and develop an integrated plan for their optimal exploitation, noted a statement issued by the Ministry of Petroeum an dMineral Resources.

The MoU stipulates that a joint task force between the two parties is formed to develop, implement, and monitor an action plan using specific mechanisms. Under the agreement, MRMIA will provide geological data, licenses, permits, and the necessary technical support, while Wadico will be responsible for conducting technical studies and economic assessments to support the efficient exploitation of oil shale and relevant raw materials.

The MoU, according to the statement, represents a serious step within the state’s direction towards alternative energy and diversifying energy sources. The project also contributes to fulfilling the local need for oil shale and other relevant raw materials while exploring the economic feasibility of the comprehensive exploitation of these resources.

This cooperation also underscores the state’s and the Ministry of Petroleum and Mineral Resources’ (MoPMR) commitment to providing an attractive environment for more local and foreign investments, enhancing the mining sector’s contribution to the national output, and generating new jobs. This also aligns with Egypt’s vision for comprehensive development. It further reinforces its position as a regional hub for the energy and mining industries.

The MoU was signed during the activities of the fourth edition of the Egypt Mining Forum (EMF), held under the patronage of the Ministry of Petroleum and Mineral Resources, affirming the Ministry’s keenness to support partnerships and national bodies to maximize the added value from natural resources.

Prior to this MoU, Wadico signed a strategic cooperation agreement with global BCM Group. This agreement is set to launch the first project of its kind in Egypt for the exploration and production of oil shale. Wadico stressed that the agreement represents a qualitative leap towards exchanging technical and geological expertise with one of the largest companies in the sector. It also opens the door to utilizing oil shale as an alternative energy source, whether through its use in power generation or as a sustainable energy source in cement factories, which significantly enhances Egypt’s capacity to diversify its energy sources.

Oil shale is a fine-grained sedimentary rock characterized by its rich content of kerogen, an organic material composed of paraffin hydrocarbons, sulfur, and nitrogen, from which oil can be extracted through heating. This distinguishes it from shale oil, which is crude oil already present within shale rock that can be extracted without thermal processing.

The extraction method for oil shale can vary significantly based on its depth. Shallow deposits can be mined using conventional techniques, similar to those employed for oil sands. However, deeper deposits necessitate more complex approaches, such as in-situ retorting or underground mining. While the room-and-pillar method of underground mining can recover approximately 60% of shale from smaller seams, its efficiency plummets for larger, deeper deposits, often recovering as little as 10% of the available shale.