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Egypt News

Minister of Petroleum Holds Intensive Talks on Sidelines of International Energy Forum

Eng. Tarek Al-Mullah Minister of Petroleum and Mineral Wealth Holds talks with number of Ministers of Petroleum and Energy and number of International Economic Institutions on sidelines of participation at the fifteens International Energy Forum which was held in Algeria, where he met with Senior Officials Headed Roberto Boca President Administration Energy. The Minister explained during the meeting, the correctional actions which taken by the government in the field of Energy, and he showed a summary of Energy strategy until the year 2035 which has been completed includes modification of different energy sources, to make new and renewable Energy have a significant contribution. Minister of Petroleum also had talks with Eng. Khaled AlFaleh, Saudi Minister of Industry and Energy and Mineral Wealth, where it discuss the possibility of Saudi ARAMCO to use facilities from SUMED Company to store crude oil and transport through SUMED lines to Europe, and also they discussed the possibility of additional activities for SUMED Company such as storage and trading of Diesel and Butane. The Minister also had talks with Mr. Anas Al-Saleh acting Kuwaiti Minister of Petroleum, and Mr. Eulogio Antonio Del Pino Dias Venzuelan Minister of Energy and the Minister had an expanded meeting with workers in PETROJET Company branch in Algeria.

Kuwait Waives About Arbitration Proceedings Against EGAS And GASCO

According to Egypt Policies currently toward investment encouragement and work on ending investment dispute through settling it friendly between parties and in addition to the deep close cooperation relations between Egypt and Kuwait. Eng. Tarek Al-Mulla Petroleum and Mineral resources Minister witnessed in the Ministry of Petroleum headquarters the signature of settlement dispute emerging agreement between Kuwait Holding Company and Egyptian Holding Natural Gas Company «EGAS» and Egyptian Natural Gases Company «GASCO» Inc. and Commercial Petroleum Services Company «PETROTRADE» Inc. and Alexandria Fertilizer Company. According to this Kuwait waives about Arbitration Proceedings against Egypt in front of International Centre for Settlement of Investment Disputes related to World Bank «ICSID» under committee of settlement disputes decades investment headed by Council of Ministers.

EGPC: 38 New Petroleum Discoveries During 2015 / 2016 BP agrees with Egypt to speed of the development of Atulfield Egypt fines European oil tanker 58 million pounds for having a broken oil pipeline in Suez

Eng. Tarek Al-Hadidi Executive for crude oil and 14 discoveries for

President of General Petroleum natural gas to contribute in petroleum Suez Court of First Instance, headed by Judge Mohamed

Corporation, shows from his side the and gas reserves. The total average YahyaRafat Fined, foreign oil tanker «Nassau Energy», most important business results of the of petroleum production was 671 and owned by partners from European countries, and fiscal year 2015 / 2016 pointing that thousand oil and condensates barrels flying the flag of Liberia the amount of 58.00085 million the corporation’s program targeted daily during the year, where western thousand pounds, for the benefit of the fishing sector in to strengthen petroleum production desert contributed around 56% of it.the Red Sea, and that after having a broken oil pipeline and secure the market needs from He noted that the corporation has in Suez in thesea water at Zeiteyatport and polluting the petroleum products and natural gas. Al-Hadidi said that the corporation had signed eight agreements to search for oil and gas and its production contributed in agreements number sea water, equivalent to 4 thousand barrels of crude oil. The oil tanker during its pumping petroleum oil in a Egypt Chooses GLENCORE, TRAFIGURA, and BP Energy to supply (LNG) Gas in A Tender achieved 38 petroleum new discoveries during the year, where 24 discoveries with investments of $2.2 billion in addition to 7 negotiated projects which during the last two years to be 24 conventions. Al-Mulla: Foreign Petroleum Companies Investments in Egypt $6.6 Billion in 2015 - 2016 pipeline to the Red Sea, broke the line and caused the leak 4 thousand barrels of crude oil into the sea water, contamination of vast tracts of the Red Sea and the Gulf of Suez water, and the destruction of the naval environment and the excuse and fish in polluted areas. The Court notified the security authorities in Port Tawfiq BP announced that it has signed a preliminary agreement with Egypt to accelerate the development of Atull marine gas field, which is now expected to begin production in 2018. The signing of the agreement with the Egyptian Minister of Petroleum after discussions between Bob Dudley, CEO of BP and Egyptian President Abdel Fattah al-Sisi. Commercial sources told Reuters news agency that Egypt Egyptian Petroleum Minister Eng. Tarek AlPort Suez with the contents of the decision that is to Dudley said in a statement: «We are pleased that we are chooses GLENCORE, TRAFIGURA and BP Energy to supply three liquefied natural gas shipments after a tender. Traders said that GLENCORE will be handed over October’s shipment and TRAFIGURA will be handed over November’s shipment while BP Energy –a expatriate new Mulla said that foreign Petroleum Companies investments in Egypt is amounted to $6.6 billion despite the financial 2015 - 2016 international petroleum prices drop while investments were $7.5 billion in 2014 - 2015. Al-Mulla said at press statements «Although international petroleum prices drop during the conserve the oil tanker «Nassauenergy» in the draft of the Suezport of, after encounter exist two days before the decision in the draft of the verdict ago after leaving Egypt after the disaster that caused, the pretext is to reconciliation with the EEAA . making rapid progress towards the development of Atull after less than eight months from the announcement of the discovery.» BP was announced relatively large field discovery in March and reserves estimated about 1.5 trillion cubic feet of gas and 31 million barrels of condensation. It is expected that the full development work of the field Atull relatively on LNG gas consists of two stages: the first consists of 2 developedwells past year, our foreigners partners spent $6.6 trade- will be handed over linked to the existing infrastructure, production is expected billion on exploration and development in December’s shipment, A to begin delivered in 2018.Itis expected the success of this Egypt». spokesman of BP Energy stage to lead to pumping additional investments for drilling Egypt targets foreign petroleum companies other wells and increase production. that his company won investments to reach $12.1 billion during the December’s shipment. The Paranoiac Petroleum company will (one of the current financial year 2016 - 2017. participating companies the Bp and the petroleum sector) Egypt Implemented Seven Petrochemical Projects with Investments $7.5 Billion implement and operateAtull development operations.

Minister of Petroleum explained that Petroleum sector Egypt provides a full need of factories of natural gasper day succeed at implementation of 7 projects in Suez and

Port Said and Damietta and Alexandria governorates at Chairman of the Egyptian Holding Company for Natural Gas (EGAS) said that the national petrochemical plan framework, with total Egypt now provide the full needs of the industrial sector of natural gas after run investments around $7.5 billion through international and the second floating station and linked to the national gas net. national companies, and annual revenues about $3 billion A large number of fertilizers, iron and steel and cement companies in Egypt with productivity capacity 5 million tons from petrochemical suffers from a lack of natural gas regular reaching but also fully snapped in some products contributed in local market needs and bring imports cases due to the Ministry of Petroleum conversion most local andimported gas and provide dollarized source, as well as providing new job quantities into electric power stations. opportunities which acts positively on Egyptian economic. Khalid Abdul-Badiexplained, according to Reuters news agency, «he said the

This was during Minister’s presidency to work association industrial sector in Egypt does not have any trouble getting its needs of gas. of Egyptian Holding Petrochemicals Company to adopt Indeed we have provided gas to all industrial sector factories with starting the second Alngez station.» business results of the fiscal year 2015 / 2016. Egypt hired two ships for Regas this year to provide the needs of gas forelectricity sector and factories. Eng. Mohammad Saafan President of Egyptian Holding A number of steel company›s officials in telephone contact with Reuters to provide the required gas for their factories from Petrochemicals Company showed the projects present the beginning of the first of November. secure its needs from crude materials and commitment situation which was implemented, and follow up and to professional security, safety and health to guarantee President Abdel Fattah Al-Sisi said earlier this month that the factories in Egypt will not face any problems in getting its gas development procedures and companies list update and by the end of November. continuation of security operating.

Arab News

Saudi Arabia ARAMCO Granted Long Term Contract For A Company in Abu Dhabi Libyan Oil Production Rises to Top level in 3 years By December

Saudi Arabia National Giant Petroleum Company ARAMCO said that it laid a long term contract on National Construction Petroleum Company in Abu Dhabi to work in ARAMCO’s Navy projects. In a statement except from finance value or work details ARAMCO said that Construction Petroleum Company will participate in building Oil and Gas Platforms and Pipelines and Electricity cables and other infrastructure. Contract duration is six years and extendable to 12 years and it is the fifth contract signed by ARAMCO as in last June it signed four similar contracts with other engineering companies. It is expected that Libyan Oil production rises to top level in three years by next December according to rerunning fields and reopening of main ports after five years of armed conflicts which caused breakdown supplies and weak sales. President of Administration board of Libyan National Oil enterprise «Mustafa Sona Allah» said in a statement in Istanbul during Global Energy Forum that Libyan National Production is currently 540 thousand barrels daily and it will reach 900 thousand barrels daily by the end of this year which will be the top production level since June 2013. Libya - Larger Oil Reserves in Africa –increased its production of crude oil after the National Oil Enterprise reached an agreement with Army Leader «Khalifa Hfter» to control on Oil ports. According to that a resumption of supplies in ports including «Ras Lanuf» and «Seder» and «Zekana» to close Libya from its production before 2011 when it was 1.6 million barrels daily.

Kuwait Signs Drilling and Exploration Contracts worth $2.5 Billion in 2016

Kuwait expanded its petroleum drilling and exploration works enormous and sophisticated during 2016, where the company signed decades to drilling wells and supply drilling platforms works at many main oil sites with 750 million Dinars which is equivalent to 2.5 billion Dollars. The value of these contracts is considered the biggest at the history of Kuwait Oil Company since years although drop in exploration and in oil production Countries after the Petroleum prices drop almost before year and a half, as drilling exploration activities is the correct evaluation for Oil exploration and production operations evolution. It aims to cover drilling programs which the Company intends to implement during the plan Strategy for the upcoming years to increase drilling rigs 90 to 150 towers early in 2017 to raise the drilling rates to reach two thousand wells by 2020, stressing that drilling operations and support services done by the company jointly with contractors will strengthen work and final production to reach targets set during next years.

International News

Russia and Turkey Signed an Agreement to Build TurkStream Gas Pipeline

OPEC Production Rises Top Level at Eight Years

Turkey and Russia signed a bilaterally agreement to construct Gas transfer pipeline TurkStream which will be under sea, the agreement was signed at Istanbul in the presence of Russian President Vladimir Putin and Turkish President Recep Tayyip Erdoğan, the agreement is to build two pipelines under black sea, precedent reports said that the capacity of every line will amount to 15.75 billion cubic meter. Turkish President stressed that it will be acceleration in the natural gas pipeline project TurkStream and plans to build Nuclear Station by Russia in Turkey with returning back relations between the two countries. Rosatom won in 2013 contract worth $20 billion to construct four reactors which was to become the first Nuclear Station in Turkey but building stopped after Turkey shoot down a Russian Fighter near Syrian boarders last year.

(OPEC) announced to increase Oil Production at September to top level at least in eight years and it raised its supply forecast growth in 2017 which indicates larger surplus at market next year despite the Organization’s agreement on scale down its production. OPEC said at its monthly report that it pumped 33.39 million barrel Per day during last September according to data compiled by the organization from secondary resources which an increase of 220 thousand barrel daily than August. OPEC said at its report «reserves are on top levels at all. Although these high levels decreased a little lat weeks». The report showed that supplies increase at September came most from Libya and Nigeria which resume production after disturbance as well as from Iraq whichwondered about accuracy numbers by OPEC’s secondary resources.

International Energy Agency said that Global Petroleum Supply may become suitable with demand more faster if OPEC agreed with Russia on big and accurate reduce in production but it is not clear yet when it might happen. The agency said in its report in August that it expects global demand growth by 1.2 million barrel daily next year to keep on forecast without a change from previous month but it reduced its estimated growth in 2016 by 40 thousand barrels daily to 1.2 million barrels daily from about 1.3 million barrels daily last month. The Agency said «Even at existence signs priority on stocks began shrinking where our expectations for display and demand may remain replete about supply during the first half of next year. (But) if OPEC committed its new objective so market will recover its balance more faster.

Energy Agency: Petroleum Market May Recover Pace Balance Faster if OPEC Committed Its Objective

Corporation News

PETROBEL: Drilling and Completion of 20 Wells and Installation of 20 Deep Wells Under Water Surface in the Giant Field Zohr

Engineer Atef Hassan, President of PETROBEL Company said that Zohr field is the largest gas discovery achieved in Egypt in the area of Mediterranean Sea sicne search operations for Oil and gas started which was achieved according to fruitful cooperation between Petroleum sector and ENI of Italy, reserves estimated about 30 trillion cubic feet of gas will be allocated to meet local market needs from natural gas, its investment will be between $12 to $16 Billion on projects lifetime, it is planned for early production from the project according to development plan by end of 2017 at a rate of one billion cubic foot daily and production will mount up to reach its peak rates estimated about 7.2 billion cubic feet daily by the end of 2019. He added that the project includes drilling and completion of 20 wells and installation of 20 well head at the sea bed, in addition to equipment measurement and protection and control and installation network of transferring gases from wells to complexes wells then to production facilities stations, as well as design and supply and manufacturing platform control Zohr field which it will be equipped with control for wells, in addition to installation of three control cables from Zohr platform to warheads wells to control wells and production.

BP Drills 21 Wells in Deep Water Fields in North of Alexandria at Depth of 1000m. Below the Water Surface

Eng . Hesham Mekkawy CEO of BP announced that the execution stages in North Alexandria fields project will be latest technologies wells above the bottom of the sea through drilling and completion of 21 wells in deep water which reaches depth to 1000 meters under water surface and requalifying Rasheed field to address gases in Giza – Fayoum field, and the establishment of new station to address gases in Raven field, and the establishment of pipeline with 35 kilometers length to relate Libra and Taurus fields with the production of Borollos fields, in addition to build up pipeline at a length of 70 kilometers meter to transfer gases from Giza, Fayoum and Raven fields by the facilities of Rasheed and East Rasheed fields. He added that the total investment cost for the project is about $11 billion and that there is an acceleration in the time of production from Libra and Taurus fields in the third quarter from next year to produce around 600 million feet daily, and project’s production rises gradually up 1,250 million cubic feet daily in 2019 / 2020 and ranges 20 - 25 thousand barrels daily from condensates.

TOTAL Seeking To Invest $200 million in Egypt During 5 years

Egyptian prime minister said that officials from French Oil and Gas TOTAL confirmed during interview with President Minister Sherif Ismail that the company will have $200 million new investments during next five years. Mittleman, Vice President of TOTAL Company announced that TOTAL is currently after acquisitions on fuel activities from SHELL and CHEVRON companies, it became the main energy supplier in Egyptian Oil and Energy market, where the company has achieved last year 2015 sales 3.6 million tons from Oil Products covering 11% of the fuel market needs in addition to 7% in engines oils market. TOTAL is working in Egypt in car supply services and fuel warehouses and manufacturing and mobilize Oils mineral engines and planes supply services beside petroleum explorations activity.

Extended life of oil and gas wells

Gas and oil wells that are nearly depleted are often abandoned, even when considerable amounts could still be extracted. The reason is that the remaining oil and gas can no longer be recovered efficiently and cost-effectively with conventional methods. A Wellhead Compression unit from HOERBIGER allows mature fields to continue to produce. Wellhead Compression (WHC) extends the life of oil and gas wells, dramatically boosting their production output. HOERBIGER WHC units have an availability of at least 95 percent, even under poor operating conditions, and generally achieve levels as high as 99 percent, ensuring continuous production. It is an honor that MCS was awarded Abu Dhabi Marine Operating Company (ADMAOPCO)Innovation Award for its latest technology Photo Realistic 3D Cloud of points (PRC) and advanced Inspection by ROV on Offshore Structure. ADMA-OPCO took the initiative to be the 1st Company in the world adapting MCS new technology. MCS CEO - Wael Bakr announced that this technology will be a turn point in subsea measurements industry as it allows the operators to visualize precisely their subsea infrastructure in both shallow and deep waters with the ability to measure to a fabrication accuracy with the same simplicity as if we are working onshore. MCSPhoto Realistic 3D Cloud of points (PRC) been successfully utilized and deployed in several other international projects covering MiddleEast, Gulf area, FarEast and Australia

MCS Subsea 3D Measuring Technology Innovation Award

Lubemaster expanding in partnership with Chevron Corporation

Chevron Corporation is one of the world,s largest integrated energy giants doing business in more than 180 countries worldwide. Headquartered in California – USA, it is also a leading global manufacturer for premium lubricants across the globe. Under the partnership umbrella, Lubemaster expand its investment with Chevron distributing and marketing industrial lubricant oils, greases, and specialty products in Egypt and offers lubricant solutions for industrial applications. The executive director Eng . Yahia Makrm said «The combined resources and technology of Lubemaster and its partner company Chevron, produce a powerful Lubricants team with a huge competitive advantage» «Lubemaster ‹synergy of its team and the unparalleled expertise in innovative technology solutions offers a unique value proposition to customers that differentiates the Company from the rest» «Our knowledge of local business environments and our world-class experience provides local know-how on a global scale».