LONDON: Egypt’s economy has received a major boost since gas from Zohr, the Mediterranean’s largest offshore field, began to be pumped ashore in Port Said city at the end of last year.
Zohr is one of the most positive energy stories to hit the Middle East recently and a boon to Egypt in particular as the development by Italian operator ENI means the country is close to reaching gas self-sufficiency.
Zohr should wipe out the need for Egypt to buy in expensive foreign gas, thereby bolstering its depleted foreign exchange reserves, and could one day make the country a net exporter to countries throughout the region and, perhaps, beyond.
Mohamed Abu Basha, Cairo-based economist at investment bank EFG-Hermes, told Bloomberg: “One of the biggest issues Egypt had over the past years was the big shift in its energy balance from a net exporter to a net importer because of an increase in consumption versus a decline in production.
“With the new gas finds, it’s returning to this balance, if not exporting, then at least there’s no deficit,” he added.
Egyptian Oil Minister Tarek El-Molla has said initial production will be 350 million cubic feet per day, rising to 1 billion cubic feet in June and 2.7 billion by the end of 2019.
Egypt had to give up gas exports in 2014 to meet local demand and because sporadic sabotage on its main pipeline in the Sinai Desert disrupted shipments.
Zohr, with an estimated reserve of about 850 billion cubic meters of natural gas in place, is expected to close the gap between supply and demand, helping to end Egypt’s reliance on imported liquefied natural gas (LNG) next year, Bloomberg reported.
The offshore field is expected to save Egypt some $1 billion annually in gas imports.
Egypt has two LNG plants, which are more or less mothballed, from which to export once production is ramped up.
In a recent statement, BP said: “The development of Zohr in a record time has brought a new critical source of energy to the Egyptian market.”
BP added that two other current major projects in Egypt — Atoll and the second phase of the West Nile Delta project — will bring further new gas resources into production. “Together these projects will play an important role in supporting and reshaping Egypt’s energy sector.”
Russia’s state-owned producer Rosneft PJSC closed a deal in October to acquire 30 percent of the Zohr field. BP has also bought a 10 percent stake.
An International Monetary Fund report on Dec. 20 said Egypt’s reform program was yielding encouraging results.
The IMF said: “The economy is showing welcome signs of stabilization, with GDP growth recovering, inflation moderating, fiscal consolidation remaining on track, and international reserves reaching their highest level since 2011.”
The banking system was said to remain resilient to moderate shocks, but although the outlook was viewed as favorable, the IMF said sustained efforts were still required to “maintain prudent policies and advance structural reforms to support the authorities’ medium-term objective of inclusive growth and job creation.”
Zohr gas field fires up the Egyptian economy
Zohr gas field fires up the Egyptian economy
Nigerian villagers are rattled by US airstrikes that made their homes shake and the sky glow red
- The strikes are the outcome of a months long tense diplomatic clash between the West African nation and the US
JABO: Sanusi Madabo, a 40-year-old farmer in the Nigerian village of Jabo, was preparing for bed on Thursday night when he heard a loud noise that sounded like a plane crashing. He rushed outside his mud house with his wife to see the sky glowing a bright red.
The light burned bright for hours, Madabo said: “It was almost like daytime.”
He did not learn until later that he had witnessed a USattack on an alleged camp of the militant Daesh group.
US President Donald Trump announced late Thursday that the United States had launched a “powerful and deadly strike” against Daesh militants in Nigeria. The Nigerian government has since confirmed that it cooperated with the US government in its strike.
A panicked village
Nigerian government spokesperson Mohammed Idris said Friday that the strikes were launched from the Gulf of Guinea in the Atlantic Ocean shortly after midnight and involved “16 GPS-guided precision” missiles and also MQ-9 Reaper drones.
Idris said the strikes targeted areas used as “staging grounds by foreign” Daesh fighters who had sneaked into Nigeria from the Sahel, the southern fringe of Africa’s vast Sahara Desert. The government did not release any casualty figures among the militants.
Residents of Jabo, a village in the northwestern Nigerian state of Sokoto, spoke to The Associated Press on Friday about panic and confusion among the villagers following the strikes, which they said hit not far from Jabo’s outskirts. There were no casualties among the villagers.
They said that Jabo has never been attacked as part of the violence the US says is widespread — though such attacks regularly occur in neighboring villages.
Abubakar Sani, who lives on the edge of the village, recalled the “intense heat” as the strikes hit.
“Our rooms began to shake, and then fire broke out,” he told the AP.
“The Nigerian government should take appropriate measures to protect us as citizens,” he added. “We have never experienced anything like this before.”
It’s a ‘new phase of an old conflict’
The strikes are the outcome of a months long tense diplomatic clash between the West African nation and the US
The Trump administration has said Nigeria is experiencing a genocide of Christians, a claim the Nigerian government has rejected.
However, Nigeria’s Ministry of Foreign Affairs now said the strikes resulted from intelligence sharing and strategic coordination between the two governments.
Yusuf Tuggar, Nigeria’s foreign minister, called the airstrikes a “new phase of an old conflict” and said he expected more strikes to follow.
“For us, it is something that has been ongoing,” Tuggar added, referring to attacks that have targeted Christians and Muslims in Nigeria for years.
Bulama Bukarti, a security analyst on sub-Saharan Africa, said the residents’ fear is compounded by a lack of information.
Nigerian security forces have since cordoned off the area of the strikes and access was not allowed.
Bukarti said transparency would go a long way to calm the local residents. “The more opaque the governments are, the more panic there will be on the ground, and that is what will escalate tensions.”
Foreign fighters operate in Nigeria
Analysts say the strikes might have been intended for the Lakurawa group, a relatively new entrant to Nigeria’s complex security crisis.
The group’s first attack was recorded around 2018 in the northwestern region before the Nigerian government officially announced its presence last year. The composition of the group has been documented by security researchers as primarily consisting of foreigners from the Sahel.
However, experts say ties between the Lakurawa group and Daesh are unproven. The Islamic State West African Province — a Daesh affiliate in Nigeria — has its strongholds in the northeastern part of the country, where it is currently involved in a power struggle with its parent organization, Boko Haram.
“What might have happened is that, working with the American government, Nigeria identified Lakurawa as a threat and identified camps that belong to the group,” Bukarti said.
Still, some local people feel vulnerable.
Aliyu Garba, a Jabo village leader, told the AP that debris left after the strikes was scattered, and that residents had rushed to the scene. Some picked up pieces of the debris, hoping for valuable metal to trade, and Garba said he fears they could get hurt.
The strikes rattled 17-year-old Balira Sa’idu, who has been preparing for her upcoming marriage.
“I am supposed to be thinking about my wedding, but right now I am panicking,” she said. “The strike has changed everything. My family is afraid, and I don’t even know if it is safe to continue with the wedding plan in Jabo.”
