The Ministry of Petroleum (MoP) oversees four holding companies that manage all elements of the oil and gas business and form joint ventures with international partners: the Egyptian Holding Company for Natural Gas (EGAS), the Egyptian Holding Company for Petrochemicals (ECHEM), Ganoub El Wadi Petroleum Holding Company (GANOPE), and the Egyptian General Petroleum Company (EGPC).
EGPC, set prices and controls every facet of the oil business in Egypt. Oil and gas revenues go directly to EGPC and aren’t incorporated into the Egyptian treasury.
Abdallah Ghorab, the new minister, will be under pressure to reform the Oil & Gas sector and to facilitate transparency. A major shake-up at EGPC is inevitable. The likeliest scenario would split EGPC in three between exploration and production activities, refining, and marketing and sales. This will allow the Government of Egypt to have greater visibility into oil and gas revenues.
Egypt’s Declining Oil Fields Lead to Growing Reliance on Gas. Many question marks surround the Natural Gas business in Egypt. Israel is importing large quantities of gas from Egypt, which was expected to significantly grow in the coming years. The deal with Israel has raised controversy at home. Ghorab faces many challenges and will have to answer tough questions raised by the Egyptian people.