The Ministry of Petroleum will launch a new oil exploration round including 11 blocks in the Gulf of Suez and in the Western Desert by the end of April 2016. Two gas exploration rounds will also be launched by the end of the year.
Egypt, which used to be a net energy exporter, has become a net importer. The country is facing a stagnating oil production (-0.3%/year between 2000 and 2014) and a soaring energy demand: since 2000, oil product consumption has increased by 3.4%/year (+59%); meanwhile, gas consumption has risen by 7.2%/year (+165%), supported by a 7.4%/year increase in production (+170%), but weighing on exports (from 18 bcm in 2008 to 6 bcm in 2013 and 0.9 bcm in 2014). Egypt's oil imports have increased by 11%/year (four-fold increase) since 2000 and the country now owes around US$3bn to international companies for oil and gas supplies.
The new exploration rounds are expected to attract investors, which are slowing down investments in a context of low oil prices.