Egypt introduces two new proposals for oil and gas exploration in the Red Sea and southern regions

Newsletter

15 Jun 2023

Egypt introduces two new proposals for oil and gas exploration in the Red Sea and southern regions. Egypt is planning to introduce two new oil and gas exploration bids on a minimum of 16 areas in the southern region and the Red Sea before the end of 2023, as reported by two government insiders to East Economy. The nation has also pushed back the deadline for two exploration bids issued in December 2022 and March of this year for the Mediterranean Sea and Nile Delta. This extension, which now runs till mid-July, allows additional time for advanced companies to develop older oil fields in the Gulf of Suez and the Eastern Desert. (Asharq)

Egypt calls on banks to submit bids for advisory role in ALEXBANK stake sale.
The Egyptian Ministry of Finance has asked both local and international banks to vie for an advisory position regarding the sale of its 20% stake in ALEXBANK, as reported by two sources familiar with the subject. This news follows Finance Minister Mohamed Maait's previous announcement in March of the government's contemplation to sell its residual 20% share in the bank. Notably, in 2006, Egypt had already offloaded an 80% stake in ALEXBANK to Italy's Intesa Sanpaolo for 1.6 billion USD. (Arab Finance)
Legislature approves two EBRD grants for Cairo Metro upgrades.
The Egyptian legislature has endorsed two grant contracts with the European Bank for Reconstruction and Development (EBRD). These grants, totaling 5.41 million Euro, are aimed at overhauling the first two lines of the Cairo Metro. The initial grant, worth 1.85 million Euro, will secure technical assistance consultants for Cairo Metro's Line 2 rehabilitation plan. The subsequent grant, valued at 3.56 million Euro, will finance the first phase of development for Cairo Metro's Line 1. (Arab Finance)
Eva Pharma from Egypt sets sights on 110 million USD medication facility in Saudi Arabia.
Eva Pharma, through its Saudi Arabian subsidiary, is setting up a 110 million USD research and pharmaceutical manufacturing facility in Sudair Industrial City. The Egyptian pharmaceutical company will be collaborating with Saudi organizations on this initiative, which involves the construction of five factories for medications and cosmetics. Operations are expected to commence in 2025. Meanwhile, pharmaceutical raw materials worth 150 million USD, currently held up at Egyptian ports, are expected to be released by the end of June. This follows a 100 million USD pledge last month from the Madbouly government to support pharmaceutical factories, according to Gamal El Leithy, the leader of the Egyptian Industries Federation's pharmaceutical division. (Asharq)
Naeem: Fair value of 'Talaat Mostafa' share estimated at 15 pounds.
Naeem Securities Brokerage Group has advised the purchase of Talaat Moustafa Holding Group's shares, establishing a fair value of 15 EGP per share. The market closing price of Talaat Moustafa's shares was 9.35 EGP as of Monday. In its report, Naeem Brokerage noted that Talaat Moustafa's net profit for this year's first quarter, amounting to 747 million EGP, surpassed their projection of 651 million EGP. (EconomyPlus)
Qatar Investment Authority in talks to acquire a share in Historic Hotels Company.
The Qatar Investment Authority (QIA) is currently discussing a potential investment in the Historic Hotels Company with the Sovereign Fund of Egypt, according to the fund's CEO, Ayman Suleiman. The Historic Hotels Company comprises seven hotels, and the investment will involve a capital increase in dollars from a strategic investor to enhance the efficiency of the hotel. (Reuters)
Legislature approves five proposed bills permitting Ministry of Petroleum to conduct oil exploration.
The House of Representatives in Egypt has passed two draft laws, enabling Petroleum Minister Tarek El Molla to form partnerships with EGAS, IEOC, and BP Exploration for oil and natural gas exploration and exploitation in areas of the Mediterranean. (Arab Finance)
Egyptian iron facilities halt or cut back production due to dollar shortage.
A number of iron and steel producers in Egypt, the most populous Arab nation, are facing difficulties due to a shortage of foreign currency required to sustain their operations and import raw materials. Consequently, some have opted to either reduce their production or cease it entirely. (Asharq)
Ecombo aims to raise 10 million USD by end of 2024 to fuel expansion in the Gulf region.
UAE's social e-commerce platform, Ecombo, plans to raise an investment of 10 million USD by the end of 2024, as part of its expansion strategy in the Gulf region. The CEO, Faris Ibrahim, stated that the company intends to enter the markets of Saudi Arabia and Oman as initial steps in their broader Gulf and Arab region expansion plan. (Arab Finance)
Japanese teams to visit Egypt for discussions on health and green energy collaborations.
Egypt is set to host a delegation from Japan in June, who will be participating in the Africa Health Exhibition 2023, according to Toyokazu Fukuyama, the Cairo office Managing Director of the Japan External Trade Organization (JETRO). Additionally, a second Japanese delegation consisting of representatives from 30 companies specializing in green hydrogen and renewable energy will visit Egypt in September. Their visit will focus on exploring avenues for enhanced collaboration in these sectors. (Al Mal)