The Anglo-Egyptian Oilfields played a significant role in the global oil industry. The discovery of oil in 1911 marked the beginning of Egypt's oil production.
The oilfields were initially operated by the Egyptian government, but in 1914, the British government took control. This led to the establishment of the Anglo-Egyptian Oilfields, a joint venture between the Egyptian government and British oil companies.
The Anglo-Egyptian Oilfields were a major source of oil for the British Navy during World War I. The oilfields' strategic location and high-quality oil production made them a vital asset for the war effort.
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The Oil Industry
Apache is the largest oil and gas producer in Egypt, and one of the largest foreign investors in the country, with an estimated 280m barrels of oil equivalent in the country.
Apache has found particular success in the Western Desert, especially in the Berenice and Ptah areas, with an exploratory rate of success in the second quarter of 2015 of 78%, about 25 percentage points higher than the historical averages for the company.
The company estimates that the break even point in the Western Desert is about $30 a barrel, and that operating expenses are about $8 per barrel, making the region a good one in which to invest.
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The Majors
Apache is the largest oil and gas producer in Egypt, and one of the largest foreign investors in the country.
Apache has been operating in Egypt since 1994 and by the end of 2014, it was one of the largest holders of land in the Western Desert, with about 27,114 sq km.
Apache's Egyptian interests are one-third owned by the Chinese-owned oil firm Sinopec, which acquired a stake in the company in 2013.
Apache has found particular success in the Western Desert, especially in the Berenice and Ptah areas, with an exploratory rate of success in the second quarter of 2015 of 78%.
Apache's assets in the Western Desert have been performing well recently, with the company estimating that the break even point is about $30 a barrel.
The company's operating expenses are about $8 per barrel, making the region a good one to invest in due to its relatively low cost structure.
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BP produces about 10% of Egypt's oil and about 30% of the country's gas, with the company restarting its North Alexandria Concession project in mid-2014 after letting it stall for a number of years.
The investment in phase one of BP's West Nile Delta project is expected to be $12bn, with production scheduled to start in 2017.
Refining
The oil industry in Africa has a long history, with the first refinery built in 1913 by the Anglo-Egyptian Oilfields company.
Egypt has the largest refinery capacity in Africa, but unfortunately, output has fallen by a significant 28% since 2009.
The average age of the refineries in Egypt is a whopping 50 years, and experts say they haven't been well maintained.
This has led to a decrease in output, with the total capacity remaining at around 700,000 barrels a day since 2001.
However, there is some good news on the horizon, with the ERC expected to be operational by 2017 and increasing Egypt's total capacity by 96,000 barrels per day.
Recent Developments
In 1914, the Anglo-Egyptian Oilfields was granted a concession by the Egyptian government to explore for oil in the Sinai Peninsula.
The concession was for an area of approximately 3,000 square miles.
The company's efforts were initially focused on the Wadi El Arish area, where they discovered a number of oil seeps.
In 1916, the company began drilling operations in the area, but it wasn't until 1917 that they struck oil.
The first oil well, known as the "Wadi El Arish No. 1", was drilled to a depth of 1,200 feet and produced oil at a rate of 200 barrels per day.
Trade and Economy
Egypt has had to import energy to meet its needs, with the country relying on international suppliers for natural gas.
In 2015, Egypt rented two floating storage and regasification units (FSRUs) from Norway-based companies to help alleviate its natural gas shortage.
The country's energy deficit has been a recurring issue, with Egypt falling into deficit in 2006 and staying there in 2013.
Egypt's oil refineries are operating below capacity, with the Egyptian Refining Company's managing director stating that they are running at around 80%.
Natural gas was still in surplus in 2009, but the surplus declined significantly by 2014, when it reached 0.6 billion standard cubic feet per day.
Egypt's energy imports have increased over the years, with the country buying 55 cargoes of liquefied natural gas (LNG) in 2015.
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Egypt
Egypt was a key player in the Anglo-Egyptian Oilfields, with the country's vast desert landscapes and rich oil reserves making it an attractive location for oil exploration and production.
The Anglo-Egyptian Oil Company, which was established in 1914, had its main office in Cairo, Egypt's bustling capital city.
Egypt's oil reserves were estimated to be around 2 billion barrels in the early 20th century, with the majority of it located in the Western Desert.
The country's oil production was a crucial factor in the Anglo-Egyptian Oil Company's success, with Egypt's oil fields producing over 1 million barrels per day at its peak.
Egypt's strategic location made it an important hub for the transportation of oil, with the Suez Canal providing a vital trade route between Europe and Asia.
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Frequently Asked Questions
Which region of Egypt has most of its oilfields?
The majority of Egypt's oilfields are located in the Gulf of Suez region, specifically in the Gulf of Suez and the Sinai Peninsula. This region is home to several major oilfields, including Morgan, Ramadan, and July.
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