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Eni Wins 2 Blocks Outright in Egypt Oil and Gas Exploration Round

Flames shoot out of a chimney at Petroleum and Natural Gas company factories by a salt lake at the Wadi al-Qamar (Moon Valley) along a highway of Alexandria, Egypt December 6, 2020. (Reuters)
Flames shoot out of a chimney at Petroleum and Natural Gas company factories by a salt lake at the Wadi al-Qamar (Moon Valley) along a highway of Alexandria, Egypt December 6, 2020. (Reuters)
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Eni Wins 2 Blocks Outright in Egypt Oil and Gas Exploration Round

Flames shoot out of a chimney at Petroleum and Natural Gas company factories by a salt lake at the Wadi al-Qamar (Moon Valley) along a highway of Alexandria, Egypt December 6, 2020. (Reuters)
Flames shoot out of a chimney at Petroleum and Natural Gas company factories by a salt lake at the Wadi al-Qamar (Moon Valley) along a highway of Alexandria, Egypt December 6, 2020. (Reuters)

Italy's Eni was the big winner in an Egyptian auction for oil and gas exploration rights on Tuesday, securing concessions for two of the four blocks outright, according to results from the petroleum ministry.

The company also won a third block with BP and QatarEnergy in the Mediterranean Sea, while Russia's Zarubezhneft was awarded a block in the Nile Delta.

Zarubezhneft's win is a rare expansion abroad by a Russian company since Moscow's full-scale invasion of Ukraine in February 2022.

Zarubezhneft already operates in seven countries, including Egypt where it is a party to production sharing agreements at offshore blocks.

Zarubezhneft declined to comment further.

Egypt, which faces growing demand for gas from its population of 105 million, has been trying to position itself as a regional energy hub, selling its own gas and re-exporting Israeli gas as liquefied natural gas (LNG) to the Middle East, Africa and Europe.

However, the country faced some power cuts in the summer and its natural gas production has fallen to a three-year low.

The government in July announced the start of a $1.8 billion program to drill natural gas exploration wells in the Mediterranean Sea and Nile Delta.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.