Mineral and energy resources Economy of Egypt

an offshore platform in darfeel gas field.

egypt s mineral , energy resources include petroleum, natural gas, phosphates, gold , iron ore. crude oil found in gulf of suez , in western desert. natural gas found in nile delta, off mediterranean shore, , in western desert. oil , gas accounted approximately 7% of gdp in fiscal year 2000/01.

export of petroleum , related products amounted $2.6 billion in year 2000. in late 2001, egypt s benchmark suez blend $16.73 per barrel ($105/m³), lowest price since 1999.

egypt s oil consumption overtaking oil production.

crude oil production has been in decline several years since peak level in 1993, 941,000 bbl/d (149,600 m/d) in 1993 873,000 bbl/d (138,800 m/d) in 1997 , 696,000 bbl/d (110,700 m/d) in 2005. (see figure). @ same time, domestic consumption of oil increased steadily (531,000 bbl/d (84,400 m/d) , 525,000 bbl/d (83,500 m/d) in 1997 , 2005 respectively), in 2008, oil consumption reached 697,000 bbl/d (110,800 m/d). easy see graph linear trend projects domestic demand outpaced supply in (2008–2009), turning egypt net importer of oil. minimize potential, government of egypt has been encouraging exploration, production , domestic consumption of natural gas. oil production 630 bbl/d (100 m/d) in 2008, , natural gas output continued increase , reached 48.3 billion cubic meters in 2008.

egypt s net natural gas exports.

domestic resources meet 33% of egypt s domestic demand, meaning large imports saudi arabia, uae , iraq necessary.

over last 15 years, more 180 petroleum exploration agreements have been signed , multinational oil companies spent more $27 billion in exploration companions. these activities led findings of 18 crude oil fields , 16 natural gas fields in fy 2001. total number of findings rose 49 in fy 2005. result of these findings, crude oil reserves of 2009 estimated @ 3.7 billion barrels (590,000,000 m), , proven natural gas reserves 1.656 trillion cubic meters additional discoveries more exploration campaigns.

in august 2007, announced signs of oil reserves in kom ombo basin, 28 miles (45 km) north of aswan, found , concession agreement signed centorion energy international drilling. main natural gas producer in egypt international egyptian oilfield company (ieoc), branch of italian eni. other companies bp, bg, texas-based apache corp. , shell carry out activities of exploration , production means of concessions granted period of ample time (often 20 years) , in different geographic zones of oil , gas deposits in country.

gold mining more fast-growing industry vast untapped gold reserves in eastern desert. develop nascent sector egyptian government took first step awarding mineral concessions, in considered first international bid round. 2 miners have produced encouraging technical results include anglogold ashanti , alexander nubia international.

gold production facilities reality sukari hills, located close marsa alam in eastern desert. concession of mine granted centamin, australian joint stock company, gold exploitation lease 160-square-kilometer area. sami el-raghy, centamin chairman, has repeatedly stated believes egypt s yearly revenues gold in future exceed total revenues suez canal, tourism , petroleum industry .

the ministry of petroleum , mineral resources has established expanding egyptian petrochemical industry , increasing exports of natural gas significant strategic objectives , in 2009 38% of local gas production exported.

as of 2009, egyptian gas exports (approximately 70%) delivered in form of liquefied natural gas (lng) ship europe , united states. egypt , jordan agreed construct arab gas pipeline al arish aqaba export natural gas jordan; completion in july 2003, egypt began export 1.1 billion cubic feet (31,000,000 m) of gas per year via pipeline well. total investment in project $220 million. in 2003, egypt, jordan , syria reached agreement extend pipeline syria, paves way future connection turkey, lebanon , cyprus 2010. of 2009, egypt began export syria 32.9 billion cubic feet (930,000,000 m) of gas per year, accounting 20% of total consumption in syria.

in addition, east mediterranean gas (emg), joint company established in 2000 , owned egyptian general petroleum corporation (egpc) (68.4%), private israeli company merhav (25%) ampal-american israel corp. (6.6%), has been granted rights export natural gas egypt israel , other locations in region via underwater pipelines al arish ashkelon provide israel electric corporation (iec) 170 million cubic feet (4.8×10^ m) of gas per day. gas supply started experimentally in second half of 2007. of 2008, egypt produces 6.3 billion cubic feet (180×10^ m), israel imports of 170 million cubic feet (4.8×10^ m) account 2.7% of egypt s total production of natural gas. according statement released on 24 march 2008, merhav , ampal s director, nimrod novik, said natural gas pipeline egypt israel can carry 9 billion cubic meters annually sufficiently meet rising demand in israel in coming years.

according memorandum of understanding, commitment of egypt 680 million cubic feet (19×10^ m) contracted 15 years @ price below $3 per million of british thermal unit, though renegotiated @ higher price in 2009 (to between $4 , $5 per million btu), while amounts of gas supplied increased. exporting natural gas israel faces broad popular opposition in egypt.

agreements between egypt , israel allow israeli entities purchase 7 billion cubic meters of egyptian gas annually, making israel 1 of egypt s largest natural gas export markets. decision export of natural gas israel passed in 1993 @ time when dr. hamdy al-bambi minister of petroleum , when mr. amr moussa minister of foreign affairs. mandate sign of memorandum of understanding (mou) delegate ministry of petroleum represented egyptian general petroleum company (egpc) contract emg company approved former prime minister dr. atef ebeid in cabinet s meeting no. 68 on 5 july 2004 when served acting president of republic when president hosni mubarak receiving medical treatment in germany.

a new report strategic foresight group on cost of conflict in middle east details how in event of peace oil , gas pipeline port said gaza lebanon result in transaction value egypt tune of $1–2 billion per year.

with respect nuclear energy, egypt s last president, hosni mubarak on 29 october 2007, few days before egyptian ruling party s annual conference, proudly gave go-ahead building several nuclear power plants. egypt s nuclear route purely peaceful , transparent, faces technical , financing obstacles. egypt member of iaea , has both signed , ratified nuclear nonproliferation treaty (npt). currently, draft law on nuclear energy being reviewed iaea , expected passed egyptian parliament. many other countries in region, including libya, jordan, uae, morocco, , saudi arabia aspire build nuclear power plants.

as of june 2009, reported cairo said israelis dig oil in sinai. report comes in time in government heavily criticized exporting natural gas israel @ extremely low rate.

starting in 2014, egyptian government has been diverting gas supplies produced @ home domestic market, reducing volumes available export in liquefied form. according memorandum of understanding, leviathan field off israel s mediterranean coast supply 7 billion cubic meters annually 15 years via underwater pipeline. equates average volumes of 685 million cubic feet day, equivalent of on 70% of bg-operated idku plant s daily volumes.

in march 2015, bp signed $12 billion deal develop natural gas in egypt intended sale in domestic market starting in 2017.

bp said develop large quantity of offshore gas, equivalent one-quarter of egypt’s output, , bring onshore consumed customers. gas project, called west nile delta, expected begin flowing in 2017. bp said additional exploration might lead doubling of amount of gas available.