Egypt: Gulf Of Suez Oil Output At 40-Year Low On Back Of Lower Prices, Capex

While the talk in Egypt in recent years has been of giant offshore gas projects, output from the country’s long-dominant Gulf of Suez oil province has yet to stabilize after 2015’s capex collapse.

Output from the Gulf of Suez region, long Egypt’s oil heartland, slumped from 313,000 b/d, 47% of the country’s total in 2010, to just 253,000 b/d for the first nine months of 2017 (see chart 1).

Output has been below 40% of the Egyptian total – a level never before breached – in six of the last eight quarters.

The region is where Egypt’s oil output began in the mid-1960s following the discovery of key fields by Eni and BP. Output first topped 300,000 b/d in 1967 and peaked at 800,000 b/d in the mid-1980s, from when the start-up of Western Desert output meant it was no longer Egypt’s only producing oil province.


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