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100-Mln-Barrel Oil Reserve Discovered in Egypt’s Gulf of Suez

Egyptian Minister of Petroleum Tarek El Molla meets the Secretary-General of OPEC, Mohammad Barkindo (Asharq Al-Awsat)
Egyptian Minister of Petroleum Tarek El Molla meets the Secretary-General of OPEC, Mohammad Barkindo (Asharq Al-Awsat)
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100-Mln-Barrel Oil Reserve Discovered in Egypt’s Gulf of Suez

Egyptian Minister of Petroleum Tarek El Molla meets the Secretary-General of OPEC, Mohammad Barkindo (Asharq Al-Awsat)
Egyptian Minister of Petroleum Tarek El Molla meets the Secretary-General of OPEC, Mohammad Barkindo (Asharq Al-Awsat)

Egypt announced on Tuesday finding an oil reserve of around 100 million barrels in the Gulf of Suez, the biggest oil discovery in the area in over two decades.

The Egyptian Ministry of Petroleum and Mineral Resources said that the initial expected oil stock is about 100 million barrels found northeast of the Gulf of Suez. It predicted that the oil reserve might include more barrels that could be discovered and extracted after kickstarting a development plan.

In a statement reviewed by Asharq Al-Awsat, the ministry said that the oil reserve is one of the first discoveries made by Dubai-based Dragon Oil Ltd after it had completed the purchase of BP’s BP.L oil concessions in Egypt’s Gulf of Suez.

Egyptian Minister of Petroleum Tarek El Molla met on Tuesday with Dragon Oil president Ali Al Jarwan, on the sidelines of the EGYPS (Egypt Petroleum Show) 2022 conference, underway in Cairo.

Molla held bilateral meetings with the Secretary-General of OPEC Mohammad Barkindo and Executive Director of the International Energy Agency (IEA) Fatih Birol.

During the meeting with Birol, Molla discussed ways to support joint cooperation between Egypt and IEA in the fields of clean energy in light of the global energy map shift and the impact of new supply and demand patterns, amid calls to rely on cleaner energy sources.

Molla stressed that the IEA has a long experience in the fields of research, development, and improvement of energy efficiency and its uses, and has valuable publications concerned with global energy issues.

For his part, Barkindo praised Egypt’s achievements in the energy field over the years.

During the meeting, Barkindo also highlighted Egypt’s strategic location among oil-producing and consuming countries.

Barkindo expressed pleasure at his participation in the activities of the fifth edition of EGYPS.

Molla said that the discussions reviewed the current situation of the global oil markets, the successive developments and significant challenges being witnessed.

His talks with Barkindo also tackled available opportunities to achieve a state of balance between supply and demand for oil, as well as the opportunities of the global energy sector to launch a new phase in the transition to clean energy and climate change.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.