A Gazprom delegation recently toured Egypt, Saudi Arabia and Qatar to discuss the progress and prospects to develop joint projects. The Gazprom visit, which was chaired by Management Committee Deputy Chairman Alexander Medvedev, was viewed as a confirmation of an already noted trend towards further cooperation in the energy sector.
In Egypt, Gazprom officials met with Sameh Samir Fahmi, Egypt’s Petroleum Industry Minister, Hani Suleiman Ali, First Deputy Petroleum Industry Minister (Gas), and Sherif Ismail, Chairman of EGAS. Within the framework of the visit, the Egyptian and Gazprom delegates agreed to examine further opportunities for joint participation of Gazprom and EGAS in a regular tender round for hydrocarbon exploration and production in Egypt.
The Egyptian government regulates the energy sector through the state Energy Planning Company, Oil Ministry, and Energy Ministry. EGPC (Egyptian General Petroleum Corporation) and EGAS (Egyptian Gas Holding Company) oversee separate directions of the energy sector.
In March 2005 Gazprom and EGAS signed a Memorandum of understanding that stipulates cooperation in the sector of gas export, production of oil and gas equipment, as well as drilling rigs and associated services.
Gazprom said the delegation was also able to discuss issues relevant to LNG-pipeline gas swaps, as well as coming to an agreement that the Russian company will be allowed to participate in Egypt’s gasification.
At present Egyptian gas is exported as a pipe gas and LNG. Egypt is the six largest LNG exporter in the world. The proven gas reserves of Egypt are at 1.89 tcm. The country’s total pipeline length is more than 16 thousand km.
Saudi Arabia and Qatar Visits
The visits to Saudi Arabia and Qatar were aimed at discussing issues of cooperation in the oil and gas sector, and highlighted promising joint ventures.
In Saudi Arabia, the delegation led by Medvedev held talks with officials from the Petroleum and Mineral Resources Ministry of Saudi Arabia, Saudi Arabian General Investment Authority (SAGIA) and Saudi Basic Industries Corporation (SABIC).
The Saudi Arabian General Investment Authority (SAGIA) is a state body focused on attracting investments as well as promoting the country’s economic development. Established in 2000, SAGIA represents a connecting link between the international business community and the Saudi Arabian Government.
The Saudi Basic Industries Corporation (SABIC) was set up in 1976 with a view to utilizing associated petroleum gas for the production of such petrochemical products as polymers and fertilizers. SABIC is nowadays the largest industrial concern in the Persian Gulf, producing some 10 per cent of the global total petrochemicals. SABIC is 70 per cent owned by the State.
Saudi Arabia is the world’s fourth country in terms of natural gas reserves estimated at 6.64 tcm of gas. Over the past decade Saudi Aramco has been active in searching for, exploring and developing both onshore and offshore gas fields. According to the corporate data, in 2005 gas extraction exceeded 70 bcm. In order to spa
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