Egypt Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Egypt Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Egypt's Oil and gas upstream market is expected to grow at a CAGR of more than 5% during the forecast period. Factors such as supportive government policies, efforts to grow the domestic oil and gas production with upcoming projects are expected to drive the market studied. However, the high capital investment required, coupled with a lack of financing due to a global economic slowdown in the event of the COVID-19 outbreak, is expected to hinder the growth of the market in the coming years.

Key Highlights

• The Natural Gas segment was the fastest-growing sector in 2019, and it is likely to dominate the market growth during the forecast period.
• High number of discoveries in recent years and the continued exploration activities are expected to provide a significant opportunity for the market players in the country's oil and gas industry.
• Increased exploration and production activities in the country are expected to be the major driver for Egypt Oil and Gas Upstream Market.

Key Market TrendsNatural Gas Sector to Dominate the Market Growth

• Natural Gas sector has dominated Egypt oil and gas upstream market growth in recent years and is expected to continue to do so during the forecast period too.
• Egypt is one of the major producers of hydrocarbons in the Middle East and African region, and the country has widespread oil and gas resources in the Sinai Peninsula, Western Desert, Eastern Desert, and the Gulf of Suez.
• Egypt is one of the major countries that own the highest reserves of natural gas in the deepwater reserves, and the country is able to extract the same with economic value. The country’s gas production has risen significantly in recent years and registered a growth of 10.9% between 2018-19.
• In 2018, the country signed an important energy MOU (memorandum of understanding) with the European Energy Commission, the European Union (EU), thus becoming an energy hub in the region. In recent years, the country has been able to sign concession agreements with international companies, which are driving the oil and gas sector.
• Owing to several major gas discoveries in recent years, the Natural Gas sector is expected to dominate the market growth during the forecast period.

Increased Exploration and Production Activities to Drive the Market

• Increased exploration and production activities in the country in recent years has driven the market in recent years and is expected to continue to do so during the forecast period too. This has led to increased rig count in the country; the average rig count in 2020-July 2020 reached 28 from 26 in 2019 and 2018.
• The onshore oil and gas sector in Egypt is witnessing growth on account of the development of new projects and the discovery of new onshore reserves. In 2018, the onshore Block 10, also known as East Damanhour, was awarded to DEA by the Egyptian Natural Gas Holding Company (EGAS). The block is located west of the Disouq development leases, and it spans over 1,418 Square Kilometers.
• In May 2019, Norway-based TGS was awarded the onshore Upper Egypt project to collect geophysical data in the onshore area south of latitude 28 degrees. The contract includes gravity survey acquisitions using eFTG or FTG techniques, conducting a seismic survey for 10,000 kilometers, reprocessing all the current data, as well as conducting geophysical studies and carrying out a geological survey. The initial expected cost, i.e., for the airborne survey, is USD 50 million.
• In July 2019, it was reported that Eni had started production from the South West Meleiha project, located in the Egyptian Western Desert, which is around 130 kilometers north of the oasis of Siwa. The production is delivered through two oil wells and is about 5,000 barrels of oil per day (bpd). It is expected that the output will reach 7,000 bpd by September 2019.
• All of the above factors combined are expected to help drive the Egypt oil and gas upstream market during the forecast period.

Competitive Landscape

The Egypt oil and gas upstream market is moderately consolidated. Some of the key players are BP Plc, Royal Dutch Shell, Total SA, Eni SpA, ExxonMobil Corporation, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.