Arab Republic of Egypt the development of the petroleum industry

...;■....•■■. V--' ■ ^-.53

ft, NATIONS vv \ (, ..■•■.•

ECbNOlVIIC AND7 SOCIAL GOUNGIL

.Distr; ,

'" LIMITED • - .e/cn.14/ep/57 ..' .

',-31 December 1973 - Original: ENGLISH

r

j

•ECONOMIC -COMMISSION- F_GR 'AFRICA . : ■_.. ... ' • ■ ■-., ■ - '":■■.-.' /-,-:'■ . ■

^Regiqnai- "Conference' oh Petroleum 'Industry' ' ' ^ '■■"•' •/•,.;■'/ *. "

•* and •Man'po'wer'Retirements ' t "\ •"* >"r' "•■ -,'. "..V ■ "

' *in "the"--JPi€fltd of, Hydrocarbons . :^ ■„ ;; ;*■_ '.>-.--"■' i ' .' . Tripoli,,../2-12]Fe1Jruary Ip74-' -. • >-". - .■■ '■' ■*•' * -\ ', " • "' .'

♦■• "■' ■•;**"*■"■. : ¥"--rV. *v* .- - '*'. -;11 "* "■'■ >%*. ■■• -■';'•'"■•.' ■•

■ % ' ■'■ •■ ' ARAB REPUBLIC OF EGYPT...\. ■ ;. . v.

^ . :''V.' '■ „ THE DEVELOPMENT 9F THE PETROLEUM INDUSTRY ■ ■

; .' * .'. ■• .(Prepared by the ECA secretariat) '. - " .."

'. '-1-".t" •'.'-■' • -' ' ' TABL£\OF 'CONTENTS' ;" ■■■""'.". " '' ■" "''i-

e-

tu. gmeral^datA' -■ - ^-'-^ ;-',.-'''i^"'~ t,r'\''.T'l'Z'!^f 7 '2. INTRODUCTION' -^'- • -; -' -,'-' - . . -,^.-.. -~ J",,-*^-'1 W" .;^f -'..V

'..3 /-:-' ' ' 2>'^t*''i The Qulf 'of Baez-Jir^a.' :- ' - '.'- '/"V"' -''"'■ ." "^ *"~ '*'!' '■•'"' . " 3.-2^ The Red'Sea/,.'.- '"-■' - ; ^'/;'-;'-■■ \'-/ K'■V--'V-- ''^ ^ .'.. '■ "*3.'3'# "„. TSe ffesterri'Deserf . .-'-■■ ."— • "—?•' .'^ -,—.' ■ ^t*.' "*■* '~ ~ ■

. 3.4:.: ■' The-Bile "Delta'Bdsi.n1'--.*.- -'- "..'-:' -. ^ -' -'V-1.- '- "-. ".

\ . 3.5; The^Nile Valley Basin. . .- ■ - - '-. - •]_. -^ ^ '- '." '3;6. ., .The North Sinai - . -- - '-' ■,-• .- -T .-- .*-., .-;

1 ■ 1.

. 2 '

': 4

: 4' 7 '8.

7 . 4;*.'.'companies andconcessions.

•'■■ •* 4.1. . Petroleum Companies Operating in Egypliv ''-",;- ^ . ;--.-. v '.8

». / ■ ■ ' '' " .- . "- ' •'•■*■ .'. ■ ■ *?■- * .1 ' "' . ■v'. ".'*• -."'."""'-1 ■ ■ '/

'. .5'.t*' PETROLEUM, EXPIipRATI ON ACTIVITY-;, _ - ;•■-■ '■'- : - -1 <■'•-■ . - ..•- > '.i-^ 13

i' ' • -'■'■■'' ' ■ ■■:-. - y ■.. .^ _ ^ •. ■ ., _ ...

' ".5.I.1- Chronological Review. - "— ■- - —•_•'-. —" - -'.—' ■,;. 13..

. *'. .-' 5»2. Exploratory Works 'Carried- Cut -<••*-""' -..--■'- '.—•"• —--'.'-" -" ' ■ ■ '16 . '

.'""/* 5«3« licploratory Drilling Activity. '.- ^- '■■'- -f^\ -:-' -\_ .*-\ *'■£■ .-"_ "' I7 ;

*6l-t" APPRAISAL- AND DEVELOPMENT.ACTIVITIES.'^ :. ;-/ '•>-'■?/-> ' « : '":.■;• rV-V' '-;2> "

" 7l ■ :OIL-AND GAE'PRODUCTlbN *- .- ' y '£.' r-''/-•' -i- * L-.'H-■;■ _:■ :"-. ". 22 ;

■ * . ■ • ■ . . ■ '' • ■ .'■■. ■ ■' ■*•..>" ^ , ->. ' - i'" -■ ./■"- r7.1.- Oil. Product ion ■ •■ - -Tf .- --1" •-•.-;,--- - •• - ; - . 22 '■

,'- -■.7.2.' Description of the."Oilfields -" ■,- :-" - '■'-■■'>.-Z' '-.'•,■ .'- 24 ■

' " *". 7#«3.. ■' Characteristics of Crude Oil .■ - .. - - '_r - r,\- ''-.t ~ ;' 43

•. ••■■•'7.4.. 'Gas Production-^ - -^ - ■-' ^-,--'.l ^- v.-' ^- '; 44".

.. ,7-5« ■ Oil" and Gas Reserves' - .- '-..-. - v.-r-:.*_-. .. - . - •"..*. 45 ' r.*'-.'. 7.6. Exploration and- Production TechnologyV,' ""''*•' ^'/t -■■ ' - , ' 4T -:

\ »

7»7»" Transport

,*'8.V. REFINERY'' -f30'75*

•■*:■■■*.:.;:■■■:'■*■ :■■:.■:■■■<;■ ?v^i.;^-

E/CN.14/EP/57

TABLE OF CONTENTS (Cont'd.)

9« PETROCHEMISTRY '- - - - ' ;->/■ _j, :,_■» L? ■-■-';-- _■ _ ^ " • s^L:'" " > '

* "lOt* MANPOWER," TRAININGli-AND-RESEARCH-"--" --"- ; "J?&-L*--> ■■•>-■■■<-■-Ji.'--*--J ■• _;?- «T 52" ; "'*'.

^ 10.1. Number of* Workers and Wages — - - - — — *■ —.. * "52 **•' 10.2. Manpower Training Activity - - - . .53 v ,'

10.3* Research ---___«.' c/ if* "

11. CONSUMPTION, IMPORTS AND EXPORTS - - - - - - .-' '* 54r- ' * 12. LAWS "CONCERNING THE: PETROLEUM ACTIVITY - _v . _v _ '_ • ■ 55.'/

13* BIBLIOGRAPHY '---'-- .4- __■___-_ ^ . ' yj-

Tables: • ' "- .

• **

* ■

'• ■ * *

1. Geological and Geophysical survey carried" out in Egypt from

1951 to 1970 ---_._ 61-*

2. Drilling activity in Egypt - Period I95I-I971 - . - '62 3« Exploratory wells drilled in Western Suez Gulf Area - -' -r *63' 4« Exploratory wells drilled in. Eastern Suez Gulf Area - . • 64?

5. Exploratory wells drilled in Gulf of Suez and Red Sea offshore ' 65" ' * ' 6. Exploratory wells drilled in North Sinai Area - '-' - . - • 66*' t 7. Exploratory^.wells drilled in Nile Delta'Basin - - _ _ / ,.67* t 8. Exploratory;wells_ drilled in Western Desert and Nile Basin - . . 66^69 9. Production of Egyptian oilfields (period 1910-1970) - - - • *" 70 '* '*

10. Summary of the production data of the Egyptian oilfields - \* , 71 * ' ■ ' 11. Recorded Egypt Crude Oil Pro.duction' -"- .- -. - _- _. 12."'

Graphics (Figures) 1.

2.

3- 4*

5-6.

7»8,

9*

10.

* -

Concession Map - Gulf of Suez Area ,' . ' Concession Map - Northern and Western Desert "' Egypt -Geological Provinces and oilfields Gravi.ty Map-.- Western Desert,

9^'f of Suez" Area -..Tectonic Map'and oilfields 'Geological Cross-Section - Ras Gharib

Geological Cro3sroection- Hurghada oilfields

Belayim oilfield- _...'. T. ■". ' ■

Geological Cross Section Belayim West '

El Morgan structure Contour Vla.pl '

- ii r ^>-.'■*•

e/cn*h/ep/57

CORRIGENDUM

Page 33, paragraph 5' from the bottom, should "be corrected to read:

The oilfield is composed of two different blocks: the mainfield or N.E* block with the water table around 1010 m. below sea level and oil of 0,925 sp, gravity? the SW block with*the water table,

around 1250 m "below sea level and a heavier specific gravity (0,960)

rf the oruido.

-III-

4::

1 A Egypt'is'a North-African country with Mediterranean and Red Sea coast • ';

lines and lies "between: ' " ' ..-.-■

■-latitudes- ■' 22°" and" 31°*- 3'0*! north' of Equator" '• '\' " ' . ' .

longitudes -25" and 36" 45' "[east'*of- the Greenwich Meridian ■ '

' --■The'area is-lrJ001^449 sq" KnV about 9^' per cent exposing sedimentary' rocksv

The population is estimated at*33o5 "million (1971); annual growth rate *

is believed to be 2O2 per centQ

* ■ "

The1 niairi't'ovjns: •■ • Cairo flieo ^^

■ (population in 1970) Aleixan'dria oo8*b!o««9 2rGi2t'000- ■" '

-*:■'-■ ■-'.'.■» ' ■ - " port 3aidj 'V

■-The:-:maih ports: ' " '■' Ale.-iraiidriaj -Port Said',' Ismailiatl Suez0 ' ' The main airports: Cairor Alexandria, Port Said, Luxor, Assiout, Asswan*.

The country's currency! Egyptian pound; after the realignment of world

currencies in December 1971 ~ ■ " . V

1 Egyptian Pound = US$2o30

Gross'Domestic Product (at current market prices) ''"*''.'

:■;":'■■•■ . ,--<'.-:\ \< ' '.''■' '.' . ■' "• • ■'■-- ' ■' ■ ' "'■■"■

E3j2r331o3 million in 1968/69 yearP mo.- . ■ . . ■- . ,

Petroleuin.productionl4r706rOOp .tons, in 1971* ■ ■ r;i -Ji

. .- '{-■.■,-■ ,;: '•:. ■ - ■■..■; .. '. .* ." '■"- - ■-- ">-' -'"■ " ■ ■'•■ :"-"

2a , INTRODUCTION /." . . ■'..+•/'.['■ ' '.'. " ... .". ,...;".•'-"..;'■=,. :i.-■■"-.: •-..-.:;■

Egypt has a long "tradition in the exploitation and utilization of its petroleum.res

The Pharaohs used a petroleum re'sidue to embalm--their, .dead:-and the.

Romans gave the name of Mons Petroleum (Gebf, El Zeit) to a mountain on the

Western Coast rtof the-Gulf of Sueze .... : , ■ . . .. .

;L-'-J I ■;>■;

In""mo"dcrn times/ Egypt was the first ..African country,to begin ,the explorar •*

tion for oil (1686), she disco-^red the first African producing oil field (1908)

and obtained petroleum products from the first African refinery in 1913e

*Note - A supplementary production of, about 5-million,tons/year is obtained...

from the Israeli occupied Egyptian oil fields located on Western Sinai area . of Gulf of Sueso

E/CNvl4/5P/57-

Page'2' r\ ■./.

The period 1908-1952 is considered "by the Egyptians as the period of

commencement of their petroleum industry, dominated entirely by,British capitaI-1

During this period., 6 oil fields were discovered and brought into production, crude oil/production reached1 -2»6 -million m^/yaat: and the Defining, capacity 2,4

million tons/year. " ' - -" •' ,.., •,;"■■

The period 1952-1972 is considered to be the period of the strengthening

and development of Egypt.' s- national petroleum industry. . By successive steps, the State gained control of the petroleum industry and now, through the Egyptian G®ri^£al Eetrbleum Corporation is managing a .modern, and .complex, industrial .sector witlO0,0C'0 employees, 24 producing oil fields, 3 refineries with, a total capacity of 8.7 million tons/'year and two petrochemical plants. ■ ; ■ - . ' '/'■■■

■'■ * . ■* '■'■•''

The ten year period, 1973-1982 is regarded by "the Egyptian Government as being the period in which-the highest, achievements within the petroleum industry will be made, with considerable.impact-on; the;development oftall the economic

sectors of the country. The" proposed figures for 1982 are: oil production about 55 million tons; gas production 8-10' billion cubic.metres; volume of recoverable oil reserves about 65O million tons; refining capacity about 15 million tons/year;

number of employees^OjOOO; .value^ of the production of the refining and petro

chemical sector about 272 million feE; total contribution"to the.gross national revenue'about 381 million &E. ' -' .' ' ■' -- ■ - ■ -■ - - '•" ':

3- GEOLOGY ■ -'-.'•* - - - - ^ : ; " r^.;;^

The general geological configuration of the Egyptian territory"is that of -!

an ancient shield of Precambrian,;,age, "the Arabi6-Nubian' massif", . covered at;

different periods by sediments of the platform type laid down under oscillatory

sea and land conditions* •' ■•" . .

The sedimentary formations, ranging'in age from Paleozoic "to"Ce"nozoi<J,': ;

were deposited on the adjoining stable shelf of the old massif as well as in • the transitional ..zone, towards the northern geosyncline of Jethydes. In

subsequent movements, impulses from the neighbouring geosyncline,l:'have" folded the platform sediments against the stable land masses. ■■ r ■_

The Gulf of Suez and Red Sea graben, closely connected with the 'great7 ;/ 'l f~"

system of fractures of the East African Rift, .have been active zones of,. v

subsidence since'.-the/CarboniferoiTs period-, - ."^ .: - lT'l:i •■"•'- ■ -~ /' li...- i; ' On the basis of the geological and geomorphological features, the :' ^':::" " '' '. | sedimentary of Egypt, extending over 9/10 of the'.territory, can be- subdivided \ into'six natural-oilr-prospective regions: ''' ■ •■ ' -' .-. • ':-v ' ■■•-,■: ? .■..-,>

- Gulf of Suez" " '■' '-' ' "'■ -- '■ - ' - - -v ■''•■" ■■--'"' ;- ' '*■' ' ■-'--'' ' ,'■

- Red Sea \\

- Western Desert

- Nile Delta , ,■■-. ■■ , .■ - . . . ■ . ■. '""'" :'_ ■

- Nile Valley (as part of the1 Eastern Desert) -." ■'- - 'v;-/1! * : !■ ,- "■■■.• ; ■ •«

--North Sinai" •■ '•" ' J -' ' ' "' ' ■*' .-■ ■'>''' ;"■.""".:■.• t':.

E/CNV14/EP/57

Pagd 3

3.1'^The Gulf'of Suez Area : . '/' -.*...'■- ".

1 To date this region has been the main petroleum-producing province in Egypt. It is a graben, oriented north-west -south-east from Suez down-to

fiurghada, extending over an area of 20,000 sq km (about 360 x 60 kilometres).

The Precambrian Basement consisting of granite's and gneisses is covered

by the following sedimentary series:' ■ -

'-' '; - The'Nubia Group, also called Nubian1 Sandstone,- ranging in age from Devonian'to'Upper Cretaceous," is composed of. continental deposits with three

1 marine episodes in Carboniferous1 (Visean), Jurassic (Bajocian-Bathonian).Jand

Lower'Cretacebu's (Apti'an?), with a thickness varying from 50 to 700 metres.

:" 'Lithoiogicaily", the Nubia Group is made up of sands and sandstones with

intercalated dolomites' and shales. +.

; • - The Upper Cretaceous is well developed (300 - 900m thick)^ and contains

valuable potential reservoirs as limestones, sandstones and sands alternating

with marks,""clay, shales, dolomites and chalky,in Cenomanian, Turoriian and

" Serionian'formations". ' ■•■■-. ■ ■ . ..'-.•

.« - ' " ,*■''••' • "■"■■.■

■ - The Lower Tertiary series of Paleocene -.Eocene »g6| 300 to.300 m«

thickj'.'in", dominant carbonate'facies, consists of limestones, chalky .and clay marls,1; shales and1 minor';sand interbeds. A compact argillaceous sequence from upperPaleocene to Lower Eocene-is called the "Esna-Shale".

_.\ .

- The liiocene deposits lie unconformably ohtop of.the above fprmations.

"They begin'with the Gharahdal Group of'Burdigalian age, dominantly clastic

"'with'conglomerates and coarse "sandstones irregularly deposited.constituting the socalled "Basal Horizon"1 and reef limestones, followed by the "Lower

Globigerina Harls" considered as being the main source rock (maximum thickness 1,490 metres); ' '"' ' "..-'''" ' '

•*'-r .The upper part of the Miocene namely, the Ras Maleab Group of Helvetian - Tortonian age is represented'"by lagoonal facies deposited, mainly evaporitee,

*'. s'ai^,; ' anhydrite' and1 gyp'siferous beds, intercalated with clays, marls and 'occasional reef-limestones and lenses of sands. r

" ' The total thickness of the Miocene varies" from north to south reaching

■ a'maximum of *4» 200 metres'.' ' . ^- ' ' '

~ The Post-Miocene deposits reaching 1,200 metres in- the area of Belayim and Feiran consist of sands, marls, clays, dolomites and; evaporites of Pliocene age covered by Pleistocene alluvium.

From the tectonic point of.view a whole series of movements ranging from -Middle Cretaceous to* the'Pliocene have created a'.complex.-^tructure paused by

the. vertical displacement of a great many faulted blocks. . .

E/CN,14/EP/57

Page 4

The Pre-Miocene uplifted fault blocks of horat and semi-horst "type, covered unconformably by the Miocene-pliocene sequence describing attenuated pseudo-anticlines due to the differential compaction,: constitute the common .-type of ...oil bearing^structures within the area.. ■ ...

■ ' * •'*.■-»

^\ . ' . ■ ,■ . ■ ' * . *

' -* ■ ' ti' ,

It is generally believed that the Lower Miocene shales and marls formed the main source for oil while the...Miocene sands and reefs together with the pre-Miocene permeable rocks formed good oil reservoirs.

., •..■ Since IO98., in the Gulf_rof Suess area, 20 oil fields have been'discovered

, with recoverable reserves of 36O million cu. metres crude oil. The main

producing:horizons were found in Lower Miocene, Eocene and Upper .Cretaceous . formations. Also commercial oil has. been recovered from Upper Miocene .

(lenticular sands within the evaporites series), Lower Cretaceous (Nubian

; sandstone}, Paleozoic (Lower Carboniferous) and the porous, basement (Ekma

oilfield)". *~ " ' . "■:**. ■ " - -;

■■ 3.2- The Red. Sea . ... . .■ ■. . ■

. . The Red Sea province extends from the. south of Hurghada' down to the

Egyptian-Sudanese border* Its prospective area to the. 200 m., .depth contour

is about 25,000 sq km, most of which is marine.

.■. ■'•/...It is believed that the-same, general stratigraphic and structural conditions determining the generation;'and the accumulation of oil in the Gulf of Suez jare■present in its continuation, the Red Sea basin.,.;. , ■

:'•*.• -South of Hurghada,i towards Safaga* the marine seismic survey reveal-

.deep, basins.off Dishet-El.Dhabaa and Abu-Soma onshore structures, unsuccessfully explored. Surface-, outcrops, between Safaga and'Ras Banae, the Miocene : section show oil tainted limestone in-the Gypsum series. ■;. ■:. ~ ■'.-__- ■ ■ , . -.

To the far south,adeep embayment with thick Miocene sediments is- also postulated from the results of a marine seismic reflection survey in the Foul Bay of Ras. Banas. area. ,..;■ -.-..' . ■ ,.■■ ■ ■■■ " - ■■■ ■-:■■. ■ :-.

* .' "I . ". " ■ t ' *" ■• ' , ' : ' -. .

The hydrocarbon potential of:the-Red Sea.area,. particularly.between Ras Banae and Halaib is also substantiated by: the evidence obtained from.1 drilling offshore north and south of Port-Sudan and in the Dahlac Archipelag from Ethiopia. South of Port—Sudan, Durware island, the^welle have encountered gas in several areneceous horizons from the Maghersum Formation (equivalent

to Lower Globigerina Marls from the Suez Gulf), In the Dahlac island's, traces

of oil and gas indications.have been also reported in the exploratory wells

drilled by .AGIP and. the.: Mobil-ESSO Group. , " -'—- -.',- :. ".

3»3 The Western Desert

. . , The Vfestern Desertis the largest oil prospective region in Egypt . -

extending over an area .of aipout 400,000 sq km (including the offshore. , Mediterranean Coast) of which the most promising part of about 120,000 sq km

is covered by concessions.

Page 5

Its'southern'boundary^is-the limit-of the marine Cretaceous; outcrops ...■.:. .-■

(25°3O' Lat. North) and the eastern boundary is limited "by the Kharga-Wadi El

Raya uplift, .andjihe :Nile. Delta?i;i-, -. , ._ -_- j , ,.^ • ■ _•_■:■''_ i.; ^ ;■

Tectpnically-the. Egyptian western desert is-a p.art of; the North-African :-:

platform .characterised-from south, to north, by, a transition from the ..stable -;l;\

shelf, area ,tq, the;.unstabie 'shelf -folded zone with a.gradually increasing -.-. -.■•■..,

thickness of ihe sedimentary section, , „ \ - .■ ,-\. .».' The southern, region exposes,-on.-the surface continental :ro.cks of-the . .;

Nubian group., and marine Cretaceous, while the: northern-region is covered by;,

the Miocene-Pliocene series with few outcrops of Quaternary deposits. Using, ,;„

the subsurface data obtained from the exploratory wells the following

stratigraphic succession .has, been established:. . .;,- ' ^ _ ■■ .'/fj- -_;,l

* Paleozoic rocks by age.from Cambro-Ordovician-to Permo-Carboniferous; .y:-:r maximum.. ihicloTeGS-, -^2,700 m, in the North-West corner, of-, the ..--Western Desert*. -■.-.- -\i This sec^cn is predui-vlnantly madeup of clastic, sands .and ;sahdstonesij.with': ■:<■•

marine' shales aeveiopment/considered.'as'"possible source-rocks- in Devbnian--and-' ,l

Carboniferous; reefs have also been encountered in the Paghur area. There have, gsrie"rally-been few-indications of-hydrocarbons to date.:- .shows-bfvgasv, are reported in the. Paleozoic, from- the Wes.t-Faghur .well,;and; a. pre ^Jurassic^rj.H-v •;,;

sand believed to be of Paleozoic age was found to be oil-bearing in Um Baraka

well No. 2. , . .::-■ - - : :->.! .' - : ■ i ■- ---s " ' ..'- : -■'

l-*A^0i6ng-period of emergence''and-dry'larid occurred!practicaliy for'the

whole of Egypt during the Permian and Triassic periods.

Mesosoic deposits start v/ith the transgressive Jurassic rocks, being mainly marine .limestones and/shales.^ The,.uppermost .part ;of theo.Jurassic, .

as well^as.the lower stage of the .Lower Cretaceousiare either, completely!: - i'-:-/

missing or only repre^ente^d .by undifferentiated-sands, .;: . • -'•'[ ..-.'^. vv^'•'

The thicloiess of the Jurassic sediments in the area to the ^J^^

of Cairo is cf the order of 2,100 metres* Oil shows were recorded in several exploratory;.wells^suoh.a^-.A'fJU Roash,, Khabatba,,'Gebel Rissu, Qattajiioa'*:J^in

dDbiI i ':' '

Although :;np-.Jurassic' discove-ry has-been ,ma'de..so.ifar(: the prospects of »::■-"

the formation, in yie.w. ;of the presence of. source rocks - limestones and ;.-/.— .:

shales - and reservoir rocks -- vuggular dolomites, sands and sandstones - are, considered .to be good-, .especially- in the areas where the facies: changes^

from carbonates to elastics. ,.■-'-■ ^ !: ■ ;.. -. .-.■•. .■■: ■ - ' : . 3_ !,.■ •■* i :

, jr The- .Lovjer-Cretaceous sequence; -is; represented by Neocomian. Aptian- ■ , ■' and Al"bian depoBits""with a maximum thickness, r^a-chedvin-the Karsa Matruh well'1 which is about 3,100 m, while south-eastwards the thickness varies only between

1,000 and'. 1,-500 m.- . ^ .V .;.:-- ■ : v .." .'- .* ^s:.;.^- - JJ'J.U^Z. "I'."-' ■ ■I'rP.-.i

l:.r%>.*-,3: .:,--r"r';T~":";...'. -,'?.-_■:■ r .. .-■■'. :--. ..-:• ■: . :. - :;-;""l^"' •"■:•■■ .-S^l

It consists of sandstone, shale and carbonates in various -proportions': .•'-.»

due to the lateral and vertical facies change.

E/CN.14/EP/57

Page 5

The shale percentage, very high in Matruh well (2,700 metres of thick marine shale) decrease southwards as the sand content increase.

The Upper Aptian Carbonate Unit, representing a distinct cycle of >.

sedimentation, being transgressive on the underlying elastics, is responsible ''.' for the oil found in the dolomite of the "Alamein formation" in the Alamein, : Yedma and Razzak oil fields0 Oil bearing sands and sandstones of the same age i were reported :'n the Urn Baraka structure (8 porous horizons), the Razzak and ;

the Meleiha oil fields.. :'

The Albian which consists of marginal-marine to deltaic deposits, ■ argillaceous and carbonates, is the final stage of the early Cretaceous • i

sedimentation., . ■ .

The Upper Cretaceous represents the widest trans"gression known in the 1 - geological history of Egypto The shales, limestones, dolomites, chalks, sand

stones and sands have been deposited in three main basins with ENE-WSW trends, : namely the Umbaraka-Alamein, the Abu El- Gharadig and the Nile (Guindi) Basins,

The respective maximum thickness of the Cenomanian, Turonian' and Senonian age ;

deposits in the three basins are 1,500 m, 2,400 m and 1,200 nu'

In the Abu Gharadig Basin, which Is the most important,- the Upper Cretaceous ,

sequence has been differentiated from bottom to top, as follows: ■ :

Baharya Formation - of Cenomanian age

Atu Roash Formation - from Upper Cenomanian (Member,g) to Lower Senonian :

(Member a)

Khoman Formation - Upper Senonian to Maestrichtian.

The sandstones and limestones of the Bahariya and Abu Roash member G *;

were found to be gasbearing while the^C and E members of Abu Roash formation '■''

have been proven to be oil bearing in Abu Gharadig oil field. ;

i

Tertiary rocks ' :

i

Paleocene- Eocene is a series of shallow marine carbonates' and shales ' ! and minor sand interbeds in the southern and western part of the Western Desert,

with an increasing amount of elastics in the Wadi El Natrun and Quattara depres- ' •

sion. The thickness is considerable, varying from 0 to 1,200 m in the Abu •« 1 :

Gharadig Basin and from 0 to 450 m in the area west of Matruh. ■ : In both areas good oil and gas shows have been reported in the exploratory i

wells drilled from the Pal eocene-Eocene sequence. ■■ •;

1 .

Part of this sedimentary succession is known as the Esna Shales (Paleocene- j>'

Lower Eocene) and the Mokhatan Formation (Eocene). j \

Upper Eocene Lower Miocene deposits, are known as Dhabaa Shales or the

Ghoroud Formation, being more than 600 m thick in a local basin of NE-SW trend, j

south of Alexandria, \ '

Page 7

■ ;'..:-■■/*.\i /f-'.^'i ;\. . -.•.-■■■.• ■■■.■.■■'■ ' ' '*!.'.-.. ::« . ■.' . -.±^:.-.,.. ....;■

The Miocene-Pliocene sequ.erice,.is;^developed only; in the-:northern -p£rt -of-;■.-, the Western Des.ert," gradually■'■increasing in thickne'ss to-the northeast towards

the Delta :area.' ' '' ...^ -- .-■' . ,-"

Thei.Miocene rocks are . divided by Said (19.62) into two rock^units .. -,r

- The Moghra Formation, a clastic unit of Burdigalian age and .of the' ■--■

facies.- . • _. , .. ... . . . "•&*&..■•;■.':. t - The Marmarica Limestonef a shallow water limestone unit of Vindobonian

age. x> Of.--;.■ ■ .■ -, '.-;;■•■'. :' '■'-■ '•' '**■■ ■ •■ ' "' '■■-

Pliocene.light,grey clays overlay the Upper Miocene with a marked litho-rt.{,-

logical and faunal break. ■ ■ ;M .-

3-4 The Nile .Delta .Basin. '■> :. ."'_ - ' . : . . .. '".• ■ .■

The Nile Delta province is a Mio—Pliocene basin covering an area of 36fOOO sq kms including its offshore part and the eastern extension of the

Suez Canal. ' . . .' ", "...-. • ■'■.•: ... a I

It represents, a gradually subsiding basin which received.both.marine Redimeiitsiand;:clastic land material. .The .deepes.t part .of the ;basin where ; ., the thickness pf;the .Mio-Pliocene-sediments.-.is thought'to exceed 4r-5PQ. ?e"tres,.

has a V shape between two faults parallel with the Damietta and Rashid branches

of the Nile. " " . ' . '

The shale represents the predominant facies, With sand-iensesf sand bars

and shoe—string deposited"'sand as.:.potential hydrocarbon reservoirs... ., ....-

Three gas fields namely ;Atu ";Madir Abu Qir and El .Wastani;.were discovered

during recent yearsf■ in.-the. Miqbene section*V . , ' , :v

In the southern part of the Delta where the Upper Tertiary."sefeti:on,:is '\

thinner, there are still prospects for'oil in the Eocene, Cretabeoiis" and

Jurassic rocks, , .. \* "" ~" ,' ,- •

3.5 The Kile-Valley Basin ■ '-■.,' ~' ■; ' ,." ^;'. ■ ;-.■' ^ ^,v

The Nile .Basin extends over.an area of about pi00r0CJ6..sq kms from Cairi . ■. ,

to Aswan, and is-bound; to the east, by tlte Urn El Tenas.sib, - .Elba;rigid shield, .'.,■

("Red Sea'Hiias") and'Lio the west by, the Kharga — .Wadi.El Rayan Paleozoic ' .:

Uplift.' r." .; " ' ■■ ■ ; ; \. ;:'" ' ;

The sedimentary sequence is: ... -■-. , .: - , _

lf500 m of Paleozoicr Jurassic and Lower Cretaceous, about 900 m of Upper Cretaceous, maximum 2,000 m pf. Paleocene. and Eocene-. " ^ :': ■ ■"'■

Many source rocks such as limestones arid marine*'1 shales;;are- present within the Eocene.>-'Upper Cretaceous section-while the^'fractured^limesipnes, reefs and

sandstone" of: sand interbeds constitute possible reservoi'r rocks• ' - ■ " .: '-1

E/CN.14/EP/57

Page 8

Residual oilr asphalts and inflammable gas were reported from Lower Cenomanian sandstones and'Middle Eocene-limestones, in the Nile Basino " r 3.6 North Sinai

Geologically^ the north' Sinai area is considered as being a normal continuation of the Western Desert.

■ •* — - i -

Sedimentary deposits from marine-Carboniferous to Recent and Pleistocene are present in a succession reaching a thicknes3 of 6r000 mo

Prom the tectonical point of viewt the area shows all the aspects, of transition from the crystalline shield and stable shelf of central Sinai to the zone of gentle foldsr the flexure belt and the zone of relative strong

folds in the Northc >-■ '-

Oil shows were encountered in the Cenomanian of the, _Daragf _ Nakhal and Abu-Hamth wells drilled in the central Sinai areao

4. COMPANIES AND CONCESSIONS

The state agency "Egyptian General Petroleum Corporation" (.EGPC) .

assures the participation of the'governments in all phases petroleum' activity tl The EGPC also has the role of planning, co-ordinating'and supervising the . activities of the petroleum operating companies,,

Previously the governmental authority for petroleum was:

the General Petroleum Authority -^period V)^6-~ I964 - the Petroleum Research Board - period 1918 - 1956"

the Departmen-t of Mines and Quarrys - period 1905 " -1918 ■

the Geological Survey of Egypt- - period 1898'-'- 1905 ' ' 4.1 Petroleum companies Operating iri Egypt- : ' ...

4*1*1 Explor; tig and producing Compan. 3S ..,-■.■■-..

Egyptian General Petroleum Corporation (EGPC) - owned 100 per.cent .by

the Government* The Company has exclusive rights in the Siva Paleozoic Basin of the. Western Desert, an ■exploratory area of 47r75O sq kmc There the ;

exploration activity is carried out with the help cf the Soviet-Union,, EGPC " ■ is the Government partner with-50 per cent interest in a 1*1 the exploratory and producing activities cf the foreign and national ccmpanieso

General Petroleum Company (GPC) *• ' " -

Owned 100 per cent by the Government. - '■'-..

The Company, a subsidiary of EGPCt holds exploitation concessions on 9 blocks in. the Gulf of the Suez over an area of 647 = 40 sq km comprising the

producing oil fields Amerr El-Bakrt Ras Gharibj KareemT Ras-Shukheir, Um

El Yusr, Hurghad'a and Sudrt Matarmar Asl (temporarily under Israel occupation).

-Page '9-

Co-operative Petroleum Company (COOP) ■---■■ " ' '■ -: ~ ~.~---——-■•-*■<-■-—.*.-.■.- Owned 100 per cent by the Government. ■. * ■ < -

Known-""also" as "Sbciete'cb'operatiye- des petroles'",1 it ■ is;;an''Egypti"an1' company' established- inrl9'3'4 ^>y a'privat'e groupV • Now it is- the'property" of * *

the State participating in COPE and in the transport of the petroleum, ....

International Egyptian Oil Company (lEOC)

■:' Owner: ■ ENI-Italy; '-" ' '-■,>.: .-'---■: • ..;." ' '*' '* : C._"■' ' \

IEOC is the oldest international oil company still operating in -Egypt«-'-~~

Company is exploring in tv;o concessioned areas in the Nile Delta and the

!" of Suez - in total 19f6OO sq km - providing-'-*al-l--the -expioratidn-'-e-Kpeh-^-•**

The Gulf

diture and sharing the rights fifty-fifty with EGPC in the case of any

commercial discoveries. ■ ' •

It is likely that the Abu-Madi gas-field-will "be developed" under such

participate.on3 -..,.',„ - • -.-.- •■

Co'mbanie ^Orient ale ■•die's- Pet'rol'es :d' Egypt e "(COPE) ° ~\ i ■ ' ■ ■■ -■■ s--^ ••■

Owners: 50 per cent EGPC; 40 per cent ENI-Italy; 10 per cent COOP

The Company is a joint-venture of the Egyptians with the ENI group .in the exploitation ;1of' several' 'oil fie Ids -ori ■ the eastern- "border of the. '.Gulf ' of

Suez', -• now' tem'porari-ly'" occupied by-Israel'. The concession has 480,65 sq\ km' ''"

compi^ising Vhe* Ras;Sidri:. Rudeis,- Feirahy Belayim-Land arid--Mafirie and'Gnara^ ^

oilfields. ■'"' ">■->•■:■ * ■-- '•'■ :.*%*w ' .- •;;•:.'.- . ■; •'■ O

AMOCO Oil Company '...''-:•. •.--""■ ">' "'" ■ ' '"'■

Owner: Standard Oil of Indiana - U.S.A. J " , *■ ' ■ ' " '

It operates in the Western Itesert and Nile Valley, holding concessipns

of'55r 150 sq'km: f6f-r«'xploratory purposes with a'50'per-cent participation - agre1emeht"1'bf-"BGPCi''J s '■'■''■ : ^ ; ;" ' "" ..•-;-! ■ ..-« ■ '■•'■- -^ ■ -»-

..i...r, ■>■>,■ ci -.' ■:.. ,-: '■< -.-*:*"..".:.1--' ■->■'-■ "■ '•■■■ ■- ^ - - ■ ":•:■'■ ■ ..-•-' '-- ■1 ■ For exploitation purposes'the company'has'twb'suDSidiaries in"'joint

venture vdth EGPCr fifty-fifty, as follows: ....

.-! - -i ■• ■• cr ■■"■'•.■, ^ >)'\ •■'■•■' ':■:;■-■■'.■: .'■'■ "'■■. .■ 1 .. ."■■) ■ . '•

. . .-V- . r - . : r . - • ••■<■■!

Gulf of Suez Petroleum Company (GUPCO) ' ' ' ' "

Owners: 50 per'cent EGPC; '-■50tper"cerit AMOCO1" 'J' ' '' ■"-■'■*'

x'.i>-6 '/:-,■ --'_■■■■ ;■;■■ ' .'■■ ^-'.; -■:■■■■ '\ ■ ~ ; This is exploiting the El Morjgan-Oil field' and -holds an exploratory '^..;

concession of 5,724§<i4cin offshore trie Gulf "of ■ Suez. -'■■■■ ' ' .'■;- ''; ■'!"",

*!■!'"

.7-..

Page ,10/

Favum Petroleum Company (PAPCQ) ■ .. . ■ , .

Owners: 50 per cent ECfPC; £0 per cent AMOCO^'" ' :"'""/' '".'

This was recently established for the. exploitation of the oil-fields*

discovered, by AMOCO in, the Western.Desert, such: as Razzak and Abu Gharadig., -.-.

Phillips Petroleum Company ' " ' ~ " ~ . .' ■ '

It operates in the Western DeseriToyer an\exploratory conces'sion area "of about 47,000 sq km. Because of the difficulties of oil exploration - Phillips assigned 30 per cent of its half-Interest concession to the Spanish firm.

"Hispanoil", r - ■■-',. :- * ■ - , ■ ■-

Western Desert-Operating Company (WEPCO) •„■ * ." * ". ..'_.," . Owners.; \§6 per cent EGPC; . .• ■ .-: ■'; ";■ ■ ■ V- '"■.-' - . "_. ,*

35 pei1 cent Phillips Petroleum Co. - USA; . -.-.-....

;-,.-.. -5 per cent Hispanoil -.Spain . . - .-...-.

WEPCO is the operational subsidiary company of Phillips in joint-venture ■ with the EGPC and holds the development lease in the Alamein, Yedma and Abu Qir, fields, without the participation of Hispanoiltt ■'-.'•- :

Transworld Oil Company ' : '**'."''*

• TKis ..is a United States.Company which recently acquired a concession,

covering 24, 000 sq km offshore and onshore in the Gulf of, Suez .and the Red Sea-- -:", area...The search, will be carried out linder.a joint venture with EGPC fifty- -,' fifty, under a ''production sharing agreement",, ' . "',',.. ■ -'- ;■.

Petroleum Development Company (EPEDCO) - . . ,, ;•

Owners: 50 per cent. EGPC; - . - ■ " . " .-r

50 per cent NOSODECO - Japan : ...

A Japanese-Egyptian,jointr-venture, on the basis of a "production.sharing agreement",, 'The Japanese coinpanyr "North Sumatra Oil Development Corporation"t

after drilling of three unsuccessful wells in the 100 sq km concession area . ..

south of Ras Gharibr has renounced,its rights as of 1972. , .

Other international drilling and"production companies"operating before 1964 in the field in E^ypt have been: . ;- . , '""V . - ,.-■ - ::(

Anglo-Egyptian Oil Fieldsj (AEO) -, affiliat'e-of Shell/!BP':

Socony Vacuum Oil Co6 (SVOC) - now Mobil group ' - ;"

Standard,.Oil..Coc of, Egypt ,.(SOE), . , . . _ ' \, . " -

Soutn\Medite'rranean''pil C*o..,_(SOMED)..;?:.. affiliate of..Caltex.;--' . .- " . .

Sahara Petroleum Company.-- US group:.qf companies including Continental Oil,

Ohiof Cities Services and Richefield Oil Co. ! '

British-Sinai Petroleum Co. (BSPC)

Tage 11

4ol«2 .Petroleum Refining Companies. • — •

; Sue a Processing Companyy.; Alexandria-P.etr-oleum'Company and Nasr Oil Company

are the three companies operating the refineries from Alexandria, Suez> Tanta

and Mostorodo All are the property of the Egyptian Government except the Alexandria Petroleum Company in which-EGPC holds 97 per cent of the'; shares.

4=l«3o Petroleum Transport and Marketing Companies

"Mobil Oil Egypt11 -subsidiary/of Mobil Oil- Corporation, USA arid ESSCH Egyjrt - subsidiary of Standard-Oil, New; Jersey ■- USA are the two international companies distributing'the petroleum products,, together with the Egyptian

Company "Misr Petroleum Company" - a subsidiary of EGPC.

. ian Pipglines jSompanv" -_is the subsidiary jpf_ EGPC^for the. transport

"of petrbleumo "*'

-z-z—-- COOP — is the first established Egyptian company for the transport and

marketing of petroleum^ . . j"r'._ •••.'

4*2 Concessions

The actual configuration of the concessions granted to the petroleum companies in Egypt is established by- contracts which were concluded during .the period.September I963 to March=1964 with Phillipsr Pan American (now

M0C0_)_;and,ENiov^The-.,essentral principles-of'the" contracts are: " " '" ""

50 per cent of any concession is granted to the" foreign company"and 50 percent to the Egyptian General Petroleum Company,

- All ^companies operate on basis of the "Participation agreement"

- The period of the agreements is up to 30 years with the possibility of

extending for a further 10 years. . ■ ■ ■

g; partner does not pay. exploration rent but is obliged to spend the total amount stipulated in .the .agreement as a "minimum expenditure

obligation". ■ ... '"'." . . ... - ... ._. .

- The foreign partner provides all the exploration-expenditure until the .^?c°ye^0^c9^e.rci^l.o.il...ox untir the ...fulfilment .of. said obligations.

In"the case of a"commercial di scoveryr development is carried out by a joint

■company formed by both parties^ .wh.o.shaljL.finance.the. development-equally.- ■ - The exploratory areas are gradually relinquished at a certain rate

according to each areao * ' " . ' '■...".

~ _ - The royalties range between 13| to 20 per cent of the production.

The Government receives 50 per cent of the net profit as taxes, the other 50 per cent of the net profit is divided equally between EGPC and the foreign

partnero

E/CN.n14/EP/57

-Page 12

- The oil produced is owned according .to..the participation of the partners.

. .__ - The price _of oil for jfcax; purposes is.based .on the highest possible

feali&ed' prioe.c: .-■-■ ■ ,., " .'. _.. "»-

The,,newcomers such as the Japanese company NOSODECO and the American company Transworld are operating on the "production sharing agreement".

A comparison of the situation of the exploration and exploitation

-concessions held in Egypt mid' 1972 and that-existing at the end of 1966

is ".presented in the following summary (Source BAAPG):

' '"' - ■ ■ - V ,.- ■ < t ■

Concessions held in Egypt (sq km)

End of Middle of

... .... ■ ■ 1966 1972

Western Desert . • . •-

a) Exploration areas - EGPC -. 47 450

- Phillips or Wepco .96,000 47r440

- AMOCO (Pan America) 75f15O 54,500

b) Producing areas . , -.WEPCO - ■* ; : lt200

, " , - : ■ - PAYUM . ' ■-;'- ;-•■ ;lr:00O(?)

Nile Deltas Gulf of Suez & Red Sea

a) Exploration areas . .. IEOC . ;• 28r125 15 500

- Pan Am«(AM0C0) or GUPCO 6,700 3r345

■■ .. ■ ■ ' - COPE - ^ -■■ ■ -■ ,600 '

- EPDC - 100

•.-"-.'•■. • ~ Transworld - 24,000

"b) Exploitation areas - GPC ,, 457 480

" COOP . , . , .. 300 -

■ ■' ' ■ • - COPE , ' 190 435

■ai ■ - ' - GUPCO - - _ • . 155

Total Exploration areas . 204,575 ■ 192 335

'Exploitation, areas . 947 3 270

Total General (sq km) ' 2O5r522 195,605

As the concessions are granted in certain areas covering "both offshore and onshore prospective territories, it is difficult to give a separate summary

for offshore concession areas.,,

E/CN.14/EP./57 Pagp- 13

5. PETROLEUM EXPLORATION ACTIVITY

5.1 Chronological Review

1868 Oil seepages were found in a sulphur, mine at Gemsa

1886-188? The^Egyptian Government, drilled 8 exploratory, wells on the Gemsa

structure and one in Zeitiar at depths ranging, from 28m to 936m;

all unsuccessful

1900-1901

19O8-i91O

PALMER, a Bmall company drilled 3 dry wells Zeit areae

in south-west -

Egyptian Oil Trust Co. (EOT) established the commercial value of the Gemsa oil field* Following the drilling of several

development wellsf the., field was .brought into .production in 1910,

■■■'< ,

1910-1916 New companies were created such as the Anglo Egyptian Oil fields

-v.;- Ltdoj (affiliate of Royal Dutch^Shell), The African Prospecting

.., '.:.'.V ...Syndicate,. .the^East em Petroleum" Co. t.ogether with EOT. A

'■'- v.,::i.' relatively intensive period of exploratory activity followed, 20

exploratory wells being drilled on the western coast of the Suez -Gulf and 3 wells on.the. eastern coast-of the Suez Gulf. This

■ work led to the discovery of the Hurgnada oil -field in J913> by

■ the.AEO who located the first well after a geological mapping in

the area. . . . ,

■■:.'..■■■■-■ ■ ■ - : %:.' ' 1-

1918 ■ The Government init iated the Petroleum Research- Department which undertook systematic geological mapping of the sedimentary areas and discovered a small oil field at' Abu-Dhurba.

--;-.' , - --..,.. , ■ ■■ ■ f

1920-71929 . Moderate, exploratory activity carried..out- by.AEOf British Sinai

Petroleum and several other small companies*....No significant discovery was made. Between 1922-1923T a gravity survey with v, a,.new toolf the Torsion Balance was introduced^ into th.e~country«

1930-1935 Wo drilling activityr only some geophysical surveys.

1935~195P. Period of intensive and modern exploratory, activity carried out

.. '.. by..four, major companies: AEO (Shell/BP) the :Standard Oil of

Egypt/ Socbny Vacuum Oil Co. (Mobil Oil) and. South Mediterranean Oil Co, "(Caltex) " - "• '.,-'.

. 1938 AEO discovered the Ras Gharib - oil r field in .the,/

western Suez Area. - -* ■ --.; , ,; ■ ,

■...■■".'■■"'■ ■ . ■ "v,.

1939~1947 Four, exploratory wells were drilled.in the western

desert'by AEOr SOMED and SOE. ■ . .,

~Cf \

E/CN.14/EP/5?

Page 14

1946-1948 A£0 in co-operation with the Mobil' -Group (SVOCE) !'":

discovered in western Sinai (east coast of the Suez

Gulf) the oil fields of Aslf Sudr■ ahd^Ras Mat'armao-l

I948 The first petroleum law (No. 136) was issued

1949-1950. Standard Oil of -gyp^ after the discovery of Feiran (I949)r withdrew'from"Egypt- (l95O)n ■' -

AEO and Mobil also suspended their exploration activity

in Egypt 0 •' ■ ■; ■ ■ -

1952—195T New petroleum companies were established to take over the explora tion activity interrupted during the previous 4 years.: *

11 1952 The'Societe Cooperative despetroles (COOP) was granted the Standard Oil exploration contracts,,

1 ' -1954 . The Sahara Petroleum Company (formed by CONOCO," Ohio

Oil, Cities '■Services and the Richefield Oil Co - USA)

was granted a*concession in the Western Desert of 230t0OOTcm,.

1954-1956 COOP was granted a concession in the Belayim area»

::■. ■■- ' They concluded-ah agreement with t'he International Egyptian Oil Compare which later was temporarily replaced by the Oriental Petroleum Co.-, to carry out exploration and exploitation work on its behalf in the area- IEOC discovered the Belayim oil-field in 1955f and Abu Rudeis in 1957*

1956 The governmental agency. General Petroleum Authority was established to planr co-ordinate and supervise oil

■ ' activiti es'. ■

■ ■ 1957 The "General Petroleum Company" (GPC) wholly owned by the Government, was formed to explore for oil in the Suez Gulf and northern Sinai™

A new company calledr "Compagnie Orientale des Petroles

■••'■ d'Egypte" (COPE) was formed with the participation of

~ ' '■'■■'■■■ Italian Wl '- group and Egyptians to explore and exploit

resources in the Gulf of Suez areao

1958-1963 Intensive exploratory activity in the Gulf of Suez area and a

temporary break in Wostem Desert activities^' ■

■ 1958 GPC discovered three oil fields in the Suez "area: Bakr,

Kareem and Rahmi.

Sahara Oil Company, after drilling nine deep exploratory '

wells withdrew from the Usstern Deserto i

E/CN-.14/EP-/57'\'t Page- 1-5* s*l

i960 The General Petroleum Auth^oia'ty;opened^

Desert area, divided into 13 "blocks, for international : '..< .-tids-, ■ '»"'""•■>-*' ■ '■ ••'-:'■ \ -.£■-{'o ,-*<<? ■; •, -re-.,... .,"

h>

1961 . Belayim-Marino, was discovered by COPE, the first l-'cc.-.'-u. ' -■ '■Egyptian -oil field''producing-from'bffshored'- '■- *'"■

■ V -.J

1962 The Anglo Egyptian. Oil Company became the "El Hasr

----""L -~~r ^ ■'■■Oil fields^Cbmpahy" with" 55. per1 cent participation* ~

{■ k!.fj.<-$ .'. • ■ ■ (now'^iOO^per cent) by the Egyptian'Governmento' c'- :°:: ~ -^

" .'-'IF.

~19^4 Considerable increase in the exploration area to approximately

•:-;.. £"il?'-2OOjdo6 'sq'kms by' t-hree^iiew Jmajar 'cbncession^agreements were granted to Phillips Petroleum Company (We3t Desert )'rT Pan "American Oil'-'Comp'any

(West Desert + Offshore Suez) and IHOC (Nile Deltas.Suez Gulf).

:" '-L'' C '"'" 'I:' ~ ■ ■ '•iLzL^J'CS^"TJ.

I965-I97O Period of rapid increases in exploratory, activities, and of .important discoveries* :-:-_:-l.lz- ■_•■'-_:_'. r-%>iivS*-il. J££i:^-iij • ■■ -

.1 t-

iiic r.-i 'i^^^^'V-j^Lscovery^of.^lie largest'-oil-'field 'in-'EgyptfLEl-Mbrgan

<<;b^ :>*:• s- -Voff-shore'"tKve*Guif lbf Suez." ' IJ! ' ' Jli- n: .'-"J - -r^^

■ ., ■ • ,. i ',',.:• '.'..'. t ,■-..■-■■ '. ' - ■ , ' .■ ' .- : ■ . ". . ■ ■ • ,. -.; ', .' „ . r :j. „,.■■>

"y J v ;.>J 3 t: . .. i 1 . ,;:. . l. -', •{■■■■* ^ - . . : ! , •'..■.:■ ).!--■ ■ *■ il— . . ^v.-ii Ii'

""ilJ'i966 -:; ' First c'dhinercial Oil discovery in tfie We'stern~'Besert'"ter: C*'J

*ne El Alamein oil fieldo . ' li ''-j;

l'"'< ' ■ - a I967 '''~'"Important' gas "discovery in! the'Nile'J Delta;'''at Abu Madi,

... 19,68 :. ...T\-/o important discoveries in the Gulf of Suez;area,.

J .""',",'. .^being the oil_ fielcls. .Umm^el."Yusr 'and. Amal: theu s.ecorid'

r.,;i '' ,','■„ ,. -■•:, -"9^3-. fi'el'd in-the^ Western Desert, Urn Baraka'J and one' ' 1'" ..Jl"1

" *" ' other" gas *eil in the'Nile Delta, El' Wastani» .-~"" -L'/;-i^'--1

r , 1969 . The^ discover:/^ of tho Abu Ghar.adig.oil field in*, the if

'"" '" - ' Western Ee's.ertjV a new agreement, was1-concluded"'with l^ .. .,

*-■-■-- Petroleum"' Company for a 30 year'perl 6do A" ^J'r"'5 '■'- . f ^' '1979. ".■" An Egyptian-^Japai-iese' .joint-vehture-,;;EPEI)CO 'was*;fprmed t'J*\

to"explpre.:bff8hbre~the. Gulf of .Suez," .' ' . ' '•-'■1'-t'1 - ' ■

1971. .... Transworldr a US ..registered company, was granted(at 24,000 sq,km,.

' J cbncessiori'iri the "Gulf"'of "Suez and Red' Sea areas 'i 0L" ''"■' v "' ,'J'

.*Z O _

New discoveries in the U'ostern lesert, west o:?, El- Alamein f .at.

Yidma> and in the Nile Delta at El Buseili were made-o -"--~ :"—

1972 .Three new'di'scovcries .i'h'the Western/Desertf' at 'Razzak/ Meleiha x~

" and 55 km "'east' of 'Atxi Gharadig'were" 'made'; ""*; -. "" " " "'"*:j'"_"" :-vxa':o '•'

Page.-16/

5*2 Exploratory,. Works .Carried-Out • ■. , -.••-■ ■ ■--.-;■ ;

In Egypt f as in the other petroleum exploring countries, the search for

oil and natural gas consists of two phases;

- The predrilling activity restricted to aerial and" surface geological and geophysical surveysa

- The exploratory drilling when a limited, number of structural holes

and a series of wildcats ,..(:tes.t wells for the discovery of new oil fields)

are made o

i ^\.9 I898" -to 1972 the prospective petroleum areas of Egypt have, been the

object, of important^ exploratory effortst as follows.: • .-

Activity

5*2.1 Surface Geological Mapping . . ■ .•

Geological mapping, as the first method .used, in the. exploration for oil,

started" in'19ll in the coastal areas,of the Gulf of.Suez and the Red Sea.

Since then geological surveys have been largely used in mapping and studying the sedimentary, outcrops, of- the, Sinair Western Desert and Eastern Desert

areas. ; :- .

Selected areas..have, been .mapped on. scale of 1 to 100r000 and 1-to 25f000 by the"petroleum companies,

Today^." the. Egyptian General Authority for Geological Survey and Mining has devised an integrated programme" for drawing out and publishing two geo

logical maps for Egypty'the fi rstt a scale of 1 to million (6 charts) and the second on a scale- of 1 to 250, COO (107 charts),,

Duilhg t.Ke .periqd"t976-i974'"it is planned to document and publish only 63 charts, the" remainder being completed from 1975 to 1980.

5.2a2 Aerial Geological Survey - Practically, all the most.interesting

sedimentary areas were'covered by aerial geological survey's, before I958 sind

the exploring companies have constructed photogeological maps,,

The Surveys are still'/continuing on detailed scale's mostly for mineral

exploration now*,

5.2*3 Gravity Survey ...' :, '. ' ]■■ ..'".- ..■•;■.;>■%

The gravity measurements started in an experimental phase with the Torsion'Falanc'e in l922r and were used extensively as a basic preliminary geological survey from 1936 onwardso

According to the data published by EGPCr during the period 1922-197Ot

an■area of about 140r000 sq km was covered by gravity surveys as follows:

E/CN.04/EP/57 Page 17

40,000 sq km - .Gulf -of Suez area ;and. Red,- Sea. Coast + . .., .:.

18,500 pq kin - Western Desert „. -. . ■ .... ,-, :.,.-.r 0, ■ ... .-,.. .,, -, ^^^-.r - 27,500 Bq km - Nile Delta area

5.0rO0O.sq km - Nile; Valley .Basin .. ■ ■-■■ T t i -t ;,:A-i _ / ■ .- ■ r- . ■; • 5,000 sq km -..NorthuSinai -, : ■ . ... _ • ,:; ,.- ..-T---,._.-.,/_ j. ._. t . . ■ -\y '_*

During the last twenty years the approximate numbeivof' party.//months.r', i,,K' used for gravity surveys has "been 120. —•—■

/Today the Egyptian geophysicists, are-preparing, on "basis of. field-data, ^ :- using,electronic computers, the..classic Bouguer, Anomaly Mapr .the. gravity^ • t;1.^ \ profiles, and the more sophisticated interpretations such as: Residual Anomaly Map, Second Vertical Derivative Map and Analytical Downard. Continuat.ioh tAriomalieSo 5*2.4 Magnetometer Survey ,. ;.f 1/7 ..^ ,0; j;r i -jt -t ■ r '- >j i > - "i'T ::Ji.

Thef magnetometer- survey started in 1963>-.initially .only for some selected

land areas.; lifter,the generalizing of the aerial magnetometer survey when it

"became'faster and cheaper, the method was expanded especially.'pver. the desert and marine areas. At the end of 1971f approximately 200,000 sq km could be considered .to- have., been. invest igated-.by. magnetometer survey-^-- ■, -.. ..,{: -t

5*2*5 Seismic. Su-ryefY; ..,- :-,,..* -, fv-■■^n.j '£■•■■ J--; -.t--;, ~,. <. '_r.^. - ■ ;i >" ■-:I^:ri.

The.-ieeismic;,survey ■is\the .basic geophysical survey designed to.locate;;

the exploratory,-wellsboth; on, landand.in marinej areas.; ..In, Egypt'the .first-, r: ..j attempt to introduce this method was made in 1929 when few refraction;-lines --.-■,.

were carried out in Abu Shaar area. In 1938 systematic work by the refraction

method was., applied :by,-the SVOIC (Mobil,Oil);,on theVWestern Coast of,the Gulf

of Suez, and by the South Mediterranean Oil Cornpahy-dn .the-Western Desertv --, -^

Since 19.48 .Standard' Oil" of Efey'pt has use5. .the r.e'fl'ectlpn seismic, survey in <■ vl >,7 Wadi Nat'ruri'afea of the'Western Desert~arid along-the. east-coast, of theTGulf f-v .

of Suez.

A rapid increase in seismic activity was-made during the last .20 years,.-j3^ -

particularly in the sixty's decade when 707 party/months of seismio survey were ...carried ^out (see ,table;l). J: .; - 1 , ■:/,.; ^;-; ;• ; ■ • . „-; ■.-'.

ljuijing. the- period 195i"1971;r some 100r.00p^,linear km ,,.ovf seismic -lines. -..','■'

were shot on land and marine areas, as follows:

61,200 km.sin the Western Desert - ; r--.-. -2,000 km in NortK-'Siriai

14,00,0. km. in the Nile Delta , .,7 /_t „■■% 22,:0QQ,km in the Gulf of Suez area 1,000 km in the Nile Valley Basin 500 km in the Red Sea area Seismic "activity in 1971 reached a peak'"of i;20" party/month a ' :.--.-"'. - .^

5*3 Exploratory Drilling Activity ..-■;:-':.: r..-._ •.,- ,•...■ C ..rr,,' ■ , TheL ^explorat ory drilling—in .Egy.pt started-in 1886-when the EgyptX ^>

Government drilled the well GEMSA-DB-1 using the cable-tool method,. ^/

E/CN.14/EP/57

Page 18

The drilling "by Rotary method was-introduced in 1937 during the ' "

exploratory work on the Ras Gharib structure, ' ■

The first well drilled in the offshore area from an offshore drilling platform was BELAYI-Marine lt in 196lr at a total depth"of 10,480 feet.

5*3.1 .Footage and Number of Wells ' - - •" ■' - ' • The total footage drilled in Egypt for oil-exploratory purposes during 84.years of activity (1886-1970), according to the statistics reported by the Egyptian;sources (Petroleum in UAR "I96O") and by BAAPG (period I96I-I970) is

: It948r758 feet or 594*411 metres, " • ':

With the following distribution by period: ■ ~ - ■ " I..-"-:-..

93,000 ft from 1886 to 1929-*•■ "23 7 r 000* ft from "1951 to i960 0 ft from 1930 to 1936 ;i/26lr00O ft from 196I to 1970

357r°°O ft from 1937 to I95O ■ : ■ ' -•• ' -

In the above-mentioned volume of exploratory drilling, is also included .the structural drillingr introduced since I938 for a number of shallow

exploratory holes drilled for structural or stratigraphic information* ■ . Structural drilling reached a total footage of 56fOOO ft; during the

period 1938 - 195Ot about 17,600 ft in the iperiod 195I-I96O and 19,650-ft "'

from 1961 to I97O. ■■: ■ ...

. * ■ ■ ■ ■ •

The evolution of exploratory drilling in the last 20 years (1951-1970) is summarieed in detail in the table No. 2 from whioh one.can see that the' year 1968: is-marked by a considerable increase in the exploratory footage,

which continued during I969-I97OW ' ■ '

It should be mentioned that during 1971f exploratory drilling activity

..decreased again to a footage of 173,760 ft. : ■

The number of exploratory wells and the distribution of the footage for the whole period l886-1970f by region, based on the data published by ENI-

"Enciclopedia deirpetrolio" and BAAPGf is shown in the following "Summary":

Gulf of Suez Area exploratory footage 1,028,524 feet

(1886-1970) :-: wells;":completed " • ■ 204 "'"■-

'-'>' average depth 5t000*-ot 1(5^0 metres

North Sinai exploratory footage 4Of656 feet

(1923-1947) . wells completed . . -- .■ ■ .... 9. -....

> average depth 4r4lO' or lr320 metres

Western Desert exploratory footage ..'.'..:....:. .... ' , 679,341 feet.; .

including Nile Valley wells completed 76

' (1939-1970) average depth 8,940r or - 2f7OO metres

Nile Delta' exploratory footage'' " *" 200,057 f (1966-1970)- _ wells completed. , . . . „.,-.. - 17-. ,-.■

"average depth / 11,256',-or 3r370 metres Total Egypt exploratory footage . • "1,948,758 feet

(I886-I97O) . . wells..completed .-.. , '■■ ii "•'-".;. ,_ 306

wells drilling at . 31.12.197O/ 7

average depth 6,200' or l.,82O metres

The detailed annual figures for the last two decades"are summarized'in table No. 2 - 8.

The general-tendency'of the exploratory works during,recent "years has been a reduction in the average depth of the drilled wells;

Year Average depth/exp lor, well Year Average depth/explor-. well

1967 . .. 12,600. ft . . 1970 . 9,180 ft

1968 ■■■■■ -- *' 11,700 ft- *• ■ 1971 ■ 7/980 ft

196? ._ ... 8,65.0 ft . ,.

■' V The above-mentioned situation can be explained by two factors:- ' ., ' V

; '■—The1 development'of new areas with the object of research'ata~ shallowed

depth.; /'■■■ ' -'■•- '•"■" ■ ■ ■" ' ' ■ '. /'l'

..." T*ie limitation in depth of the wildcats drilled in the Western Desert arid the Nile Delta areas, in-accordance with'the geological objective instead of drilling for'information up to the maximum depth allowed by the outfit•

5*3«2 Success Ratio ;■ ' '" : " ' ■

Out of the total number of 306 exploratory"wells drilled in Egypt during -., the period 1886-1970, oil and gas was obtained from only 40 of them (33, ■ ■ "

discovered new :oil pools and 7; :gas) the remaining 266 being abandoned as dry '""

wells. - ■

This corresponds to a success-ratio of about 10*8 per cent which- appears

to be low for a country with large new prospective areas.

The distribution of the successful exploratory wells in the different

regions is: :. ..'. .. ■ .. ... .' - - :— . \.

. \.

Gulf "of. Suez-Area . (Western Coast - 11 oil producers from 120 wells

' ■ ' - ■■£ ( . . drilled = 9#2 per cent *,«*"

Total- ■- 28 oil wells (Eastern .Coast - 11 oil producers'from 57 wells -,-:..■

from 204 wells drilled - . ( .:.:■.:.-- ' '■■ ■- drilled ='19.3 per cent ' ■ " ' success ratio = 13.4^ (Offshore;.- -1-.- - 6 oil producers from 27 wells i\

.( ! ■';■■--■■-_'■ ■■'■■■:• drilled ='21.3 per. cent '.-• '• '

I« . c

Period 1961-1967

1968-1970

Success

11 = 18 60 . L. « 8

■■ 80■■-•'■

ratui Page 20

North Sinai - All 9 exploratory wells drilled were dry ,

Delta Area - 6 gas wells from 17 wells completed; success ratio = 35 per cent

WeBtern Desert - 5 oil wells and 2 gas wells, from 76 wells completed;

success ratio = 9»2 per cent

- The -variation of the success-ratio of the exploratory wells within the different periods is as follows:

£eriod Success ratio

1886-1950 ..■■ 11_ « &ol%

136 ' , : ;,. .

I95I-496O 11 « 36,8$

■ ■• 30-

The low value of the success-ratio in Egypt could be explained by;

— The statistic .it.self which by comparison with other countriest contains elements of:nature which could decrease the success ratio such ,• as the quality

of the wells (75 per cent wildcats and 25 per cent structural holes) and the

long period of, referenceo It is well known that before 1940r exploration had not benefit ted from the aid of a modern and accurate geophysical surveyr which explains also the low rate of success in Egypt during the period 1886-1950.

- The geological features of the explored areas together with the stage of exploration- as in the.Western Desert where the success-ratio during the - last six years corresponding to the beginning of exploration in that area, is

less than 10 per cent« ■ , ■

5«3«3 Oil and Gas Discoveries . - ...

During the period l886—1972r the following discoveries of oil and gas

deposits were made in Egypt:

Oil Discoveries . . . ..,.-.. r >

20 Commercial Oil Fields in the Gulf of Suez Area

Western Coast Eastern Coast' Offshore ■■■ ■■

Gemsa (I9O8) Abu Dhurba (1918) Belayim Marine (I9.6l)

Hurghada (1913) Sudr (1946) Ras Gharaa (1964)-

Ras Gharib (1938) Asl (1948) El Morgan (1965)

Ras Bakr (1958) Matarma (1948) Ras Amer (I965).

Kareem (1958) Wadi-Feiran (1949)

- Ras Shukheir (I966). Belayim (1955) ■ Urn El Yusr (1968) A"b^a Rudeis (1957)

Sidri (1958)

Ekma (I96I)

E/QU14/EP/57,

-- Commercial-.oil^frlQldn-.in Western -Dasort

, El-^l-ainein.:(:1966)- : ._ .Razzak (1971)m- . . ■:...-, u- ',' '.-- _c.

Yidma (197-1) ;'.- ,;JJm Baraka;(l969 );->■•.■; . • .v. ■ ' " ' ^.u Abu Gharadig (1969)

' •■"-• r..si i r ■■ '

7 05"? flalta undor evaluation ' - - - ■

Gulf of Suegjireas Jl (19^7)r Anal (I968)r-Uyun .(1968):

Western Desert; Qattara Rim (l967-)>- "Camel Pass (1968) i.i-i-.- .Meleiha (l972)r.Easi; Abu Gharadig (1972)

•.oil.-.-discovery,

- '- ■' y-~ "G-uif of Suez-ai-ea:'-J: " ' Nezzaaat"1 ( ; ; )r Rahmj> (i960): Ras.'Bahar(i966)

Gas Discoveries -.S'^ ■■.-.■ • V-.-:;?•' " ' :- '• .- " r^ - 2 Commercial gas fields in, the Nile -Delta-/ ..- . ;;

Abu Madi (1967) "" ■^''•' •'-' "" ' " "::

Abu Qir (1969) . . ... • , rV .

2 Gaa fields \inder evaluation .. ' - '

El V/aa-feaii £1968)/ ETBuseili ,.(1971)

NQn--qoimnierc3.jal-'^as disc qjeries

l£ii£j2^i; >.M Sheikh (1966) :-

Western '.Dgs^iJL -'"Abu1 Sehari (l967)-: * '" -

5°3.-,4 Reserves Discovered ,., ... - . ^ ,_, ,

As a result ox exploratory activity carried out during the period .1886 . . to 1971« "khs total amount of recoverable and gas proved reserves-is-estimated'

try EGPC at: _ . . , . . .•:•-.■..- ,, . .-■

-,_.« ... » ... (360"million" [fuc^ in tlie Gulf of Suez area

390 millions ntoCc of oil (■ 30 million moc» in the. Western Desert> __ .__. . .. „ . _ ,

;^t ■>■,;, : ■- - .*'- ■ ■ ■=--. ■ ; ■ ' :-\c •> i. t •'!•>.• '"■ ■ . ■■ ■• ' * '■'- ;■■"

'if:.v£ - '.

milliards m.c'o in the Western Desert

..,"... '.' .'

60 "APPRAISAL WTIi DF/ELOPMENT ACTIVITIES .--- ■ . .■ . . . -.

In Egypt as in the United States of America and by the western oil companies, all drilling following the first discovery well on a geological structure is considered as being appraisal and development drilling,

Unfortunatelyr Egyptian sources do not report accurate dat* about this kind of drilling activity»

nnUin;™ifl ™ « «*•«=. ( 7C,milliards moc. in the Nile Delta

110 milliards m<jc.3- of «gaB -■ -. - > -.■r^-r.-. n ^ .• - , ,:■.-. .1. ,.: ■■.,- . ■ ^ -

■ °- {. 40 milliards m.Co in the Western De

Page. 22

By making an estimate of 9O7'OOO for'1956, in addition to the BAAPG '

published date for 1951-1970 and using also the "UAH-Petroleum activity j Book" for the period I9IO-I95O' we arrived at an approximate, volume of *' I appraisal and development drilling as follows: • -

Period Feet

I9IO-1950 « 76lr364 ' '

1951~196O- » ■ ' '927tOO4

1961^1970 = 1,998,472 ■ ;

Total , 3r731f843 or lf138r212 metres

In the table 2 the detailed annual evolution during the last..two • ' 1

decades (1951"-197°) is, shownu The global success-ratio and the average depth

..of.Vthe development wells during the same period should also be noted: ' .

1951 - I960 172 development wells drilled ■■":■•' !

average depth 5f65O- or lr72O metres 147 completed as oil .wells

success-ratio -147/172 = 85$ ■

1961 - 1970 305 development wells drilled

average depth 6,560' or 1,998 metres

266 completed as oil wells and 6 as gas wells success-ratio -' 272/305 = $1%

For the year 1971 the development and appraisal footage reached 167,100, with the completion of 21 wells of average depth 7,950' or 2f420 metres; 20 wells were completed as oil producing, with a success ratio of. 95 Per cent*

7. OIL AND GAS PRODUCTION i

7.1-, Oil Production ' _ " ,

The first year in which Egypt "began to produce oil was 1910, when the - ; Gemsa oil fie'..d was brought into production.

A level of production of 1 million' me/year was reached after 30 years, « : i.e* in 1940, and peak Egyptian oil.production was reached in 1970 when a ;

volume of l8,945r!OO m»Co crude oil produced was recovered.

The following figures show the development of crudo oil production in

Egypt during 60 years of activity: i