Egypt Expands Drilling in Gulf of Suez, North Damietta

A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, near Ismailia port city, northeast of Cairo, Egypt October 27, 2018. REUTERS/Amr Abdallah Dalsh/File Photo
A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, near Ismailia port city, northeast of Cairo, Egypt October 27, 2018. REUTERS/Amr Abdallah Dalsh/File Photo
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Egypt Expands Drilling in Gulf of Suez, North Damietta

A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, near Ismailia port city, northeast of Cairo, Egypt October 27, 2018. REUTERS/Amr Abdallah Dalsh/File Photo
A container ship crosses the Gulf of Suez towards the Red Sea before entering the Suez Canal, near Ismailia port city, northeast of Cairo, Egypt October 27, 2018. REUTERS/Amr Abdallah Dalsh/File Photo

The Egyptian Ministry of Petroleum announced Monday that its expanding search activities of oil petroleum and gas, and developing output fields in Ras Shukeir, Gulf of Suez.

This also includes continuing to develop and enhance the efficiency of basic structure and production facilities in the region.

A statement by the ministry revealed that the average of output from the fields of the Gulf of Suez Petroleum Company (GUPCO) reached around 61.7 barrels of crude oil per day during the fiscal year of 2018-2019.

There is a plan to increase the output from fields of Ras Shukeir to around 73,000 barrels of oil per day.

The chairperson of GUPCO, Geologist Khaled Hamdan, said during his meeting with Minister of Petroleum and Mineral Resources Tarek El-Molla that the company aims to increase investments in Ras Shukair fields from USD391m in FY 2018/19 to about USD503m in FY 2019/20.

GUPCO plans to bring total investments in the fiscal years (FY) 2019/20 and 2020/21 up to USD1.2bn to expand research, exploration, and development activities. The company aims to drill 13 new wells and carry out 12 repair operations, which will contribute to increasing production to targeted rates.

Meanwhile, Shell Oil Company announced that the “Discoverer India” Drillship will begin drilling its first exploration well “Montu” at a depth of 6,000 meters below sea level in the West Delta Deep Marine (WDDM) concession by the end of the month, according to the company’s statement.

“The Company has put a strategy to increase and sustain natural gas production in the Mediterranean through a series of steps, such as exploring investment opportunities in the concession, as well as using innovative ways to explore natural gas in an unconventional way in Egypt, in 20,000 feet marine depth”, said Khaled Kacem, Shell’s Chairman and Managing Director in Egypt.

Kacem stated that Shell supports Egypt in turning into a regional energy hub by taking several steps such as investing significantly to recover Rashid and Burullus gas plant’s production capacity, which contributed with 40 percent of total Egypt’s gas production.

Omar Hilal, Rashid Petroleum Company (Rashpetco) General Manager and Managing Director said: “The Montu Well, which will be drilled with huge investments lies in a Pre-Messinian layer in 6,000 meters depth which is the equivalent to 20,000 feet in a High-Pressure, High-Temperature (HPTP) layer."

"Montu drilling process shall take around five months once they get started, as the well’s reserves are around 4.7 trillion cubic feet (tcf), while the drillship will keep operating for a year as a part of the exploration process that includes another well that is fully owned by Shell," he added.



Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.