Year 2006 had witnessed many achievements in various petroleum sectors. Such achievements led to providing the growing needs for the petroleum products and the natural gas and exporting the surplus. Thus, the country's needs of petroleum products and gas were provided at a value of $ 21.3 billion at world prices, with a total cost reaching $ 13.6 billion and was sold in the domestic market with around $ 5.2 billion.

The Petroleum Wealth

In 2007, production of crude oil, condensates and natural gas have reached around 72 million tons, the biggest production realized in the history of the petroleum sector. Moreover, crude oil, petroleum products, petrochemicals and liquefied gas and its derivatives production have reached around $ 10.3 billion, with an annual increase of about 33 %.

Conventions

The petroleum sector had witnessed the approval of the People's Assembly on 14 accords signed by the Egyptian General Petroleum Corporation and the South Valley Holding Company for Petroleum, including 10 new ones and 4 amendments into previous accords. Lately, 12 accords were signed in the framework of paying due attention to intensifying the petroleum and gas prospecting operations in the South Valley.

Moreover, the petroleum sector had succeeded in signing 10 petroleum accords, in addition to two other ones that are underway for the South Valley Holding Company for Petroleum with Canadian, British, Emirates, Australian and Indian companies during the last three years. Total value of expenditure on the 10 conventions have reached around $ 282 million on an area of 22,000 km2, representing 50 % of the total area of Upper Egypt, in addition to digging 46 wells, in comparison with 12 only that were dug throughout the history of prospecting in Upper Egypt.

International Bids

Year 2006 had witnessed evaluating bid No. 1 of 2005 for the Egyptian General Petroleum Corporation, after it was shut down in February 2006. Such bids were implemented for 12 sectors in the Gulf of Suez area and the Eastern and Western Deserts. Moreover, the Corporation had announced the No. 1 international bid of 2006 for 6 areas in the Western Desert and the Gulf of Suez that were shut down in November 2006. Furthermore, the same year had witnessed announcing for bid No. 1 for the Egyptian Holding Company for Natural Gases for 12 sectors in the Mediterranean Sea area, Delta and Sinai.

Drillings

Year 2006 had also witnessed the implementation of 43 drillings, including 23 for crude oil in the Eastern and Western Deserts, Sinai, Delta and the Gulf of Suez, in addition to 20 for natural gas and condensates in the Mediterranean Sea, Delta and the Western Desert. Total value of added reserve from such discoveries reached around 3 cubic trillion feet of gas and 108 million barrels of crude oil and condensates.

Refining

The refining field had witnessed around 31 million tons of crude oils in all the refining laboratories in Egypt so as to meet the increasing needs of domestic consumption, along with increasing the available surplus for exportation.

Projects

Edco Complex for Liquefying and Exporting Natural Gas has been inaugurated and the second phase of the natural gas line from al-Aqaba till al-Rehab, North of Jordan, at a length of 395 km and a diameter of 39 inches had been operated by the Egyptian-Jordanian Fajr Company.

Moreover, year 2006 had witnessed operating 11 car service and petrol stations, in addition to 33 new stations that are under construction.

Usages of Natural Gas

Year 2006 had also witnessed signing agreements for extending the natural gas pipelines to around 1.4 million housing unit in the various Egyptian governorates. Extension operations are currently under implementation in the framework of the national plan for extending the natural gas for 6 million housing units during the coming 6 years.

Activating the Domestic Market

In 2006, 5 new companies, including Agrium Egypt for Nitrogenic Products and the Egyptian-Chinese Company for Manufacturing Oil Rigs were established, and three other companies, such as the Egyptian Company for Oil Tankers and another company for refining and petrochemicals in al-Ein al-Sokhna are under construction.

Gold was discovered in Egypt in the Old Kingdom; 4000 BC, and such discoveries continued till 1958 when the production was halted in the Eastern Desert. Number of sites monitored in the eastern desert reach 120. Some of these sites were only used during the Pharaonic era, while others continued production during the Roman and Islamic eras till past years.

1.8 Million Ounce to Reach 5.7 Million by 2010/11

“Hems” Company abides by a scientific method that is based on international standards that are totally implemented by Egyptians so as to groom experienced generations capable of pursuing work in this field.

The Company had also built an equipped laboratory to analyze the samples in the site and build a reception unit for the VIPs, a clinic, a mosque and housing units for the laborers, in addition to a workshop for mechanical and electrical works, a storeroom to keep the Company's requirements and a Helicopter tarmac. Moreover, it includes many specialized technical laborers in, among others, geology, engineering, accounting and law.

It also signed contracts with international and local specialized experts in evaluating the raw materials and the economies of operation.

Petroleum and Gas Projects in 2007

Year 2007 witnesses developing the al-Amal field in the Gulf of Suez and the West Field (Merlon- al-Mansoura) with an investment cost of $ 7 million, and extending the natural gas pipelines to 6 million housing units,1000 plants and 500 touristic villages in 6 years with an investment cost of around LE 30 million.

In addition to implementing the third phase of the Jordanian Rehab City till the Syrian and Jordanian borders and continuing Taba - Sharm El-Sheikh pipeline with a total cost of LE 615 million, plus resuming the petrochemical projects.

Also during 2007, a number of 9 new companies had discovered gold, an international bid was announced for to exploit the raw phosphate with the highest added value and a company for metallurgical drilling, for the first time in Egypt's history, has been established.