Eni unveils new natural gas discovery in Egypt

Newsletter

16 Jan 2023

Eni unveils new natural gas discovery in Egypt. Eni announced a major natural gas discovery at Narges-1 exploration well in the Narges Offshore Area Concession in the Eastern Mediterranean, offshore Egypt. Approximately 200 net feet (61 meters) of milocene and oligosin gas-bearing sandstones were discovered in the Nargis-1 well and 1,014 feet (309 meters) of water was drilled by the Stena Forth drillship. Chevron Holdings C Pte. Ltd. is the operator of the Nargis Offshore Area concession with a 45% interest, while Eni’s wholly owned affiliate IEOC Production BV holds a 45% and Tharwa Petroleum Company holds a 10% interest. (Al Mal)

London-listed Capricorn Energy plans to hold a vote on its merger with Israel’s NewMed on Wednesday 1 February
The same day that shareholders will vote on a motion to overthrow the board called by activist investor Palliser Capital. Capricorn, which has a portfolio of producing assets in Egypt’s Western Desert, and NewMed (FKA Delek Drilling) have proposed an all-share merger that would hand shareholders in the Israeli company almost 90% of the merged entity. (London Stock Exchange)
Oriental Weavers participates in DOMOTEX Hannover Fair
Oriental Weavers Carpets (ORWE) announced its participation in DOMOTEX, the world’s largest trade show for carpets and floor coverings. The company exhibits its 2023 collection at the DOMOTEX Hannover Fair, taking place in Germany from January 12th to 15^th. The 33rd edition of DOMOTEX returns this year after a 3-year absence amid covid-19 restrictions. (Arab Finance)
Taaleem Management Services’ consolidated profit increases in 3 months
Taaleem Management Services (TALM) posted a consolidated net profit attributable to the parent of 107.017 million EGP for the three-month period ended November 30th, 2022. It is noteworthy that the company’s consolidated net profit amounted to 71.302 million EGP in the September-November period of 2021. (EGX)
The Sovereign Fund of Egypt (SFE) will offer a 20-30% stake in these companies to strategic investors
The state wants to raise as much as 6 billion USD through strategic stake sales via the pre-IPO fund, Planning Minister and SFE head Hala El Said has said. The fund will sell shares worth 2.5-3 billion USD during an initial phase before offering another 3 billion USD at a later date. The SFE set up its pre-IPO fund in September to prepare state-owned companies for eventual listing on the EGX. It will sell shares in a number of companies to strategic investors before proceeding with public share sales when global market conditions have improved. (Asharq Business)
Foreign Minister Sameh Shoukry discussed a number of regional crises with his Saudi counterpart Prince Faisal bin Farhan Al Saud in Riyadh last week
The two ministers discussed the Grand Ethiopian Renaissance Dam, as well as developments in Palestine, Sudan and Yemen, among other issues. On the sidelines, Italy’s Ambassador to Egypt Michele Quaroni discussed with Prime Minister Moustafa Madbouly new areas of cooperation between the two countries, including in energy, maritime transport, and agricultural reclamation, according to a cabinet statement. The meeting follows reports that Italy has submitted a proposal to Egypt to work on a joint 2.8 billion USD electricity interconnection project with a capacity of 2.5-3 GW. (Al Ahram)
Egypt to finalize Arish port development plan in Q1 2024
The work plan for the development of the port of Arish will be completed during the first quarter (Q1) of 2024, Head of the Suez Canal Economic Zone (SCZone) Waleid Gamal El-Dein said. The plan includes the implementation of sea docks, breakwaters, container handling yards, and internal roads, and raising the efficiency of buildings, walls, and gates of the port. Gamal El-Din added that the development plan is worth 830 million EGP, noting that expected revenues from trading ships in this project would reach approximately 28 million USD.
After a particularly challenging year for businesses who were up against FX shortages, rising raw material prices and record high inflation, some local players are optimistic that 2023 will be more forgiving to the industrial sector in Egypt
At the center of this view sits a set of government policies designed to incentivize manufacturing in key sectors and mitigate some of the logistical bottlenecks that have cropped up in previous years. While there’s much more to be done especially with regards to financing, insiders we spoke to are finding that these policies are a step in the right direction. (Al Mal)
Government-led initiatives are driving the positive outlook
The government last year identified nine priority sectors which include building materials, chemical industries, pharmaceuticals and textiles, that will be getting a hand from its 200 billion EGP import substitution program. These nine industries alone are responsible for some 140 products and accounted for 23% of our import bill in 2019 (some 17 billion USD). Other policy programs like granting more land to manufacturers under a usufruct system and various other incentives are also in the pipeline. (Al Mal)
Egypt to scrap black market in near future: Madbouly
The Egyptian government will eliminate the parallel exchange rate market during the coming period, Prime Minister Mostafa Madbouly said. Madbouly stressed that the government would spare no effort to subsidize basic commodities to ease the burden on citizens. The premier also revealed that the aim of the recent monetary policies and measures is to stimulate development and to eliminate the black market for the greenback. (Hapi Journal)
Egypt to invest 9.5 billion EGP in Aswan in FY2022/23
The Egyptian government allocated a total of 9.5 billion EGP to invest in various projects in Aswan government under the fiscal year (FY) 2022/2023 plan. Planning Minister Hala El-Said noted that the directed investments in Aswan under the current fiscal year’s plan are 17.3% up from the last FY’s plan. (Arab Finance)