EGYPT - Reserves.

Egypt's proven reserves are estimated at 3.2 bn barrels of oil and 68 TCF of natural gas. In early 2000, Petroleum Minister Sameh Fahmi said reports submitted to EGPC at end-1999 suggested that proven reserves could be revised to 8.2 bn barrels of oil and 120 TCF of gas.

Application of new state-of-the-art E&P technology, including work on the deep waters of the Mediterranean, with the assistance of IOCs has resulted in Egypt's proven natural gas reserves doubling to 66 TCF in 2000-04. That reserve figure was given by Minister Fahmi in the course of the World Petroleum Technology Congress held in late 2004 in Cairo organised by Schlumberger. Egypt revised up its gas reserve estimate twice in 2003, raising it from 55.9 TCF from June 30 2002 to 60 TCF in May 2003 and to 62 TCF.

On the same occasion, Fahmi announced that a new offshore gas discovery had been made 200 km off the coast and at a depth of 6,000 ft, thanks to the application of modern technology. He gave no details about that find. Between 2001 and 2004, 41 gas finds had been made, adding reserves of 14.7 TCF of natural gas and 127m barrels of condensate. Sixteen of those finds containing reserves of 6.7 TCF were made in fiscal 2003-04 alone. Fahmi added that the state-owned Egyptian Natural Gas Holding Co. (Egas) had signed exploration agreements calling for total investment of $36.5m.

Gas production in late 2004 averaged 3,300 MCF/d, according to Fahmi, with Mediterranean fields accounting for 60% of the total, the Western Desert for 24%, the Gulf of Suez for 10% and the Nile Delta for 6%. He said domestic gas consumption rose from 28 BCM/year in fiscal 2002-03 to 31 BCM/year in fiscal 2003-04, with the power sector accounting for 63% of the total. The figures for fiscal 2004-05 and 2005-06 are increasingly higher.