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Today, President Abdel Fattah El-Sisi met with Prime Minister Moustafa Madbouly, Minister of Petroleum and Mineral Resources Tarek El-Molla, Minister of Public Enterprise Sector Mahmoud Esmat, Director General of the National Service Projects Organization of the Armed Forces Major General Walid Abul Magd and Head of the Egyptian Company for Mining, Management and Exploitation of Quarries Major General Abdel Salam Shafiq.

The Spokesman for the Presidency, Counselor Ahmed Fahmy, said the meeting touched on ongoing efforts to develop Egypt's means to benefit from mineral wealth, mainly Tantalum. Egypt has reserves of Tantalum, which is one of the most precious and rare elements used in many sophisticated industries, such as aircraft components, electronics and microelectronic circuits, mobile phones and laptops, as well as the manufacture of some medical components such as prosthetics and artificial joints.

The President gave directives to optimally manage and use Egypt's mineral wealth and raw materials and stressed the importance of adopting the best methods of modern management and governance, as well as advanced technological techniques, so as to maximize the added value of Egypt's mineral wealth, and contribute to strengthening the state's industrial plan and the national economy.

Distributed by APO Group on behalf of The Presidency, The Arab Republic of Egypt.

By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org)

With its key oil fields maturing, domestic gas consumption on the rise, and Europe on the hunt for African energy to replace Russian supplies, Egypt is counting on foreign investors to help it meet both current and emerging demand — no surprise given that the Egyptian petroleum industry has depended on private-public partnerships with global organizations for decades.

A full 100% of the country's petroleum production involves foreign investors, including some of the best-known companies in the industry, such as Shell, BP, Eni, and APA Corporation (formerly Apache). According to the International Trade Association, between 2015 and 2021, Egypt signed just shy of 100 deals with international oil companies (IOCs) — worth USD17 billion — and offered signing bonuses for the drilling of 319 wells. In 2022 alone, there were 53 new oil and gas discoveries in Egypt, according to the Ministry of Petroleum and Mineral Resources' 2022 Achievements Report.

But this isn't a case of Egypt auctioning off potentially prolific blocks (as of January 2021 proved reserves stood at 3.6 billion barrels of oil and 75.5 trillion cubic feet of natural gas) then sitting back and merely collecting royalties.

The only way IOCs and independents can become involved in Egypt's upstream sector is through a joint venture company with a state-owned entity such as Egyptian General Petroleum Corporation (EGPC). While the contractual agreements take different forms — production sharing being the most common — the approach enables Cairo to keep close tabs on its resources (and ensure appropriate extraction) while granting its partners access to opportunity accompanied by reduced risk. Today, no fewer than 50 IOCs and independents are joint venture participants, and they're having a huge impact on the country's economic well-being. According to the International Trade Association, hydrocarbon production is “by far the largest single industrial activity in the country.” In fiscal year 2019-2020, with oil output fairly stable, it represented approximately 24% of total GDP.

The African Energy Chamber looks at trends in Egyptian oil and gas and the role of foreign investors in “The State of African Energy Q1 2023 Outlook Report,” soon to be available at https://EnergyChamber.org

Committed to Partnership

As if Egypt's vast resources weren't enough to interest global energy companies, the government's favorable policies reinforce their commitment to creating attractive investments.

For example, although EGPC doesn't establish a joint venture until the foreign company has completed exploration wells (and therefore has a chance to determine whether the prospect is viable), it often helps offset the sunk costs — possibly millions of dollars — by giving a larger share of the production to its partner. It also doesn't hurt that Egypt's production costs are among the world's lowest, meaning it takes less time for companies to recoup their capital expenditures. And, of course, having a government entity as partner provides access to midstream and downstream facilities at lower cost.

According to “The State of African Energy Q1 2023 Outlook Report,” those factors are paying off for companies like America's APA Corporation, which partners with EGPC in Khalda Petroleum Company, Egypt's largest oil producer.

Despite their long-term, highly successful relationship with APA, Egypt isn't ready to rest on its contractual laurels. In 2021, the country modernized and consolidated its production sharing agreement with APA and APA's Chinese partner in Egypt, Sinopec. Aimed at boosting rig count and production, the 20-year agreement, valued at USD3.5 billion, had an almost immediate effect: soon after, APA and Sinopec announced plans to double the average drilling rig count compared to 2021, to increase well completions by 3x, and to increase upstream output by 12% to 15%. APA held 5.3 million gross acres in Egypt at year-end 2022, most of it — about 68% by company estimates — undeveloped. The company says Egypt provides “considerable exploration and development opportunities for the future.”

At the same time, EGPC's other joint ventures — Belayim Petroleum Company (PETROBEL) (with Italy's Eni); Gulf of Suez Petroleum Company, or GUPCO (with Britain's BP); and AGIBA Petroleum Company (Eni and Russia's Luckoil) — are also working to further solidify Egypt's standing as a regional energy hub.

But this isn't just an oil story — after all, Egypt is Africa's third-largest natural gas producer — nor is it limited to marquee names in energy.

German independent Wintershall Dea, for instance, may be less well-known than the IOCs but has been working in Egypt as long or even longer. The company began producing oil in the Gulf of Suez 50 years ago but has since pivoted to natural gas. Among other partnerships, it has joined with EGAS, Egypt's state-owned gas company, in a 50-50 joint venture called DISOUCO.

New Players in the Mix

Recent contractual activity suggests that the joint venture model will undergird Egypt's oil and gas industry for years to come.

For instance, early last year, Egypt signed new agreements with Canadian independent Transglobe Energy Corp. and London-based Pharos Energy to explore, develop, and produce petroleum in the Eastern and Western deserts. The deal includes approximately USD506 million in new investments. Capricorn Energy, headquartered in Edinburgh, Scotland, which in 2021 acquired Shell's onshore assets in the Western Desert, is another new name to watch. The company has already announced production is exceeding expectations and plans to increase capital spending as a result.  As for the IOCs, Shell, Eni, BP, and BP are all preparing new drilling programs. Chevron has said that going forward its global focus will be on Egypt and Suriname.

What this also suggests is that the world needs more energy, not less, and that efforts to discourage investment in African energy in the name of global decarbonization haven't been anywhere as successful as Western climate activists would have liked.

To read the full “The State of African Energy Q1 2023 Outlook Report,” visit https://EnergyChamber.org/

Distributed by APO Group on behalf of African Energy Chamber.

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On May 9th, 2023, the Embassy of Sweden, who holds the Presidency of the Council of the European Union, and the European Union Delegation to Egypt, hosted an event focusing on Energy interconnectivity between Europe and Egypt.

The event started with welcome remarks from Ambassador Håkan Emsgård, Ambassador of Sweden to Egypt, and Ambassador Christian Berger, Ambassador of the European Union Delegation to Egypt, as well as by H.E. Minister Rania El Mashat, Minister of International Cooperation, H.E. Minister Tarek El Molla, Minister of Petroleum and Natural Resources. It was followed by panel discussions with European and Egyptian policymakers and business representatives, including Ms. Gelsomina Vigliotti, Vice President of the European Investment Bank (EIB) in Luxembourg. The panels highlighted policies, priorities, and financial instruments to support energy transition and the linking of Europe and Egypt in this field.

“The demand for sustainable energy is increasing in Europe. Egypt is well positioned to supply such energy. To connect Egypt and Europe is therefore the obvious way forward. This will benefit the economy of Egypt and Europe alike, but it will also benefit the climate since the energy can be used in a more efficient and sustainable way” said ambassador Håkan Emsgård, Ambassador of Sweden to Egypt

During his remarks Ambassador Christian Berger, Head of the European Union Delegation to Egypt said “The EU has vast knowledge to share and we have the means to help, as the world's greatest donor to climate financing providing over 40% of global public climate money through our Member States. In many countries, we deploy technical support, investment grants, capacity building, and guarantees to manage risks and leverage private investments.

Berger added “If we are to deliver a Green Deal for Europe, making the EU the model for a just and sustainable transition, we believe we must have the legitimacy to press and assist others in doing the same. Then we will be able to truly impact the future of our world.”

Engineer Tarek El Molla, Minister of Petroleum and Mineral Resources, stressed in his speech that the European Union is one of the most prominent partners of the Egyptian energy sector and has always had an important and active role in various oil and gas activities in Egypt, pointing out that since the 2018 signing of an MOU for Strategic Cooperation in the field of energy between Egypt and the European Union, the two sides enjoy a fruitful long-term relationship and the European Union has become Egypt's largest trading partner.

Minister El Molla added “The geopolitical tensions and energy market fluctuations that the world is currently witnessing are motivating countries to further diversify their energy sources in order to achieve energy security, stressing that energy security and energy neutrality are complementary goals and that Egypt's vision is to play a key role in the flow of global energy trade and promote a Better Business Link environment to ensure continued cooperation and that Egypt has proved that it holds the keys to being a regional hub for gas and oil through its strategic location, a well-established energy industry and a strong infrastructure that helps to monetize all the potentials in the eastern Mediterranean region.”

For her part, Dr. Rania Al-Mashat, Minister of International Cooperation, said: "Our relations are historical and close with the European Union, and in light of the country's priorities and its Sustainable Energy Strategy 2035, strengthening partnerships in the field of renewable energy, green hydrogen and achieving interconnection is a priority at this time, based on the great potential that Egypt has and its quest to stimulate green transformation and expansion of renewable energy sources. During the cop27 climate conference, we witnessed the signing of the agreements of the "Nowafi" program, which stimulates green investment in the fields of water, food and energy, as well as the Mediterranean hydrogen partnership funded by a European Grant, and many agreements that reflect Egypt's commitment to move from pledges to implementation."

The first panel “Interconnectivity: Financing Renewable Energy” focused on renewable energy, green hydrogen, and electricity Interconnections. The second panel “Working together to resolve the energy crisis” dealt with finding ways and solutions for Europe and Egypt to partner in resolving the energy crisis.

On the sidelines of the event, the EIB and ALEXBANK signed a loan agreement under the framework of the first Green Economy Financing Facility (GEFF) which is co-financed by the EU.

Distributed by APO Group on behalf of Delegation of the European Union to Egypt.

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UNHCR, the UN Refugee Agency, led a mission of UN humanitarian agencies facilitated by the Ministry of Foreign Affairs and border authorities to the Qustul border crossing on 8 May to meet those who had just crossed into Egypt after fleeing Sudan, discuss the needs and how best to support them in collaboration with the Egyptian authorities and local partners.

The joint delegation included UNHCR Egypt Representative, Dr. Hanan Hamdan, accompanied by Ambassador Neveen El Hosseiny, Deputy Assistant Minister for Migration, Refugees and Combatting Human Trafficking at the Egyptian Ministry of Foreign Affairs, Mr. Jeremy Hopkins, UNICEF Representative, Dr. Naeema Al Gasser, WHO Representative, Mr. Praveen Agrawal, WFP Representative, Mr. Sylvain Merlen, UNDP Deputy Representative and Mr. Bernard El Douahi, Programme Manager at IOM Egypt, among others.

The delegation met with border officials and Sudanese officials on the Sudanese side of the border to discuss the needs there and how best to address them.

UNHCR is leading an interagency response with the UN Resident Coordinator and sister UN agencies in collaboration with the Egyptian Government to respond to the growing needs of people fleeing Sudan and crossing into Egypt needing international protection. At the border, UN Agencies have been supporting the work of the Egyptian Red Crescent through provide life-saving assistance and core relief aid, distributed by the Egyptian Red Crescent to new arrivals, including water, hygiene and sanitary kits, latrines, wheelchairs, food and medical assistance.

In parallel to visiting the borders, and meeting with refugees there, UNHCR has also been meeting with refugees and community leaders in urban areas in Cairo and Aswan, counselling new arrivals and trying to assess their needs and concerns to inform the joint response plan UNHCR is leading on with sister UN agencies.

According to numbers UNHCR received from the Egyptian Ministry of Foreign Affairs, around 70,000 have crossed into Egypt including 65,104 Sudanese and 4,876 third-country nationals during the period 15 April - 7 May. To date, more than 1,400 individuals fleeing Sudan approached UNHCR and UNHCR is providing them with expedited registration and pre-registration services based on their vulnerability profiles so that they can access services available to refugees and asylum-seekers made available through UNHCR and its partners in Egypt.

Following registration, refugees and asylum-seekers receive support delivered through our implementing partners. Through the partners, UNHCR Egypt supports refugees and asylum seekers to meet their basic needs and have access to health and education services. Services provided by UNHCR, and its partners cover health, education, multi-purpose cash assistance to the most vulnerable, psychosocial support, protection and child protection services, among others.

Distributed by APO Group on behalf of United Nations High Commissioner for Refugees (UNHCR).

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Today, President Abdel Fattah El-Sisi met with Prime Minister, Dr. Mostafa Madbouly; Minister of Housing, Utilities and Urban Communities, Dr. Assem El-Gazzar; Governor of Cairo, Major General Khaled Abdel Aal; Presidential Advisor for Urban Planning, Major General Amir Sayed Ahmed; and Chairman of the Armed Forces Engineering Authority, Major General Ahmed Al-Azazy.

The Spokesman for the Presidency, Counselor Ahmed Fahmy, stated that the meeting followed-up on projects underway to develop the historical areas of Cairo, including the area around Qal 'at Salah al-Din al-Ayoubi (Citadel of Cairo), as part of the state's plan to restore the cultural face of Cairo and its ancient historical splendor.

President El-Sisi stressed the need to give due interest to the preservation of archaeological sites and facilities of historical value, so as to highlight the unique characteristics and inherent architectural spirit of the region. The President also emphasized the importance of increasing green spaces to become outlets for the area's inhabitants and visitors. He noted that this should be implemented in an integrated manner, consistent with work underway to develop neighboring communities, with the aim of improving the quality of life in Cairo along various developmental dimensions, whether urban, cultural or touristic.

Distributed by APO Group on behalf of The Presidency, The Arab Republic of Egypt.