Egypt Petroleum and Refining Industry
Egypt sits atop 4.4 billion barrels of crude oil in place and produces 650,000 b/d of crude oil and liquids.
Egypt is the 6th largest owner of oil reserves in Africa and the largest non-OPEC oil producer in the continent. With a rated refining capacity of 720,000 b/d, Egypt is known as the largest African refiner. Furthermore, due to enjoying the Suez Canal and a 200-mile pipeline, the country remains the largest supplier of crude oil from the Persian Gulf to Europe and America. Offshore oil reserves account for half of the Egypt oil reserves. Currently, more than half of Egypt’s crude oil production is supplied from the Gulf of Suez.
Egypt was once a major player in oil supply in the world, but over recent years its production has declined significantly and the country has turned into a net- importer, i.e. an exporter has simply become an importer. Egypt’s state-run company Egyptian General Petroleum Corporation (EGPC) handles petroleum industry affairs in the Arab country. Britain’s BP, Royal Dutch Shell and Italy’s ENI are the leading foreign companies present in Egypt’s petroleum industry.
Import to Egypt
Egypt’s refining industry is a state-run industry. Of a total of 10 refineries in Egypt, only one belongs to the private sector.
Under a long-term five-year agreement, Saudi Arabia will be exporting 700,000 tonnes a month of oil products to Egypt. Kuwait will be also exporting 1.5 million tonnes a year of oil products and 2 million barrels per month of oil to Kuwait.
Egypt’s state-run Middle East Oil Refinery Co was established in 2007 to help meet domestic demand. It has been seeking to upgrade refineries in order to strike a balance between supply and demand in oil products consumption.
Egypt is currently able to meet only 65% of its domestic needs. The country depends on imports for the rest, which amounts to
An important point in Egypt's refinery industry is that all Egyptian refineries are facing technical problems and have low-energy facilities. 300,000 b/d. Egypt plans to increase its capacity, but refinement of the refineries is delayed. With the current conditions in the refining industry of Egypt remaining, the country will not see significant leakage in production and refinement in the short and medium term.