Egypt is a significant oil producerand a rapidly growing gas producer. The Suez Canal and Sumed Pipeline are strategic routes for Persian Gulf oil shipments, making Egypt a strategic focal point in world energy markets.

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GENERAL BACKGROUND
On November 17, 1997, Islamic militants staged a bloody attack on foreign tourists at the famous Queen Hatshepsut Temple in Luxor, killing 62 people -- the worst terrorist attack ever in Egypt. Following several years of relative calm, this attack once again raised the issue of Egypt's political and social stability. Prior to the Luxor attack, Egypt had experienced a period of solid economic growth since the 1990/91 Gulf War. Over this period, Egypt's economy had been helped by several factors, including a reduction in foreign debt, a relatively stable security situation, a reduced budget deficit due to tight monetary and fiscal policy (including cuts in spending and subsidies), and an economic reform and privatization program. Egypt's economic growth also had been fueled by a surge in tourism revenues, one of the country's five main revenue sources (the others being remittances from the 2.5 million Egyptians working abroad, oil exports, foreign aid, and Suez Canal revenues).

Prior to the Luxor attack, Egypt's economy had been expected to grow (in real terms) 5.4% for 1997, and 5.5% in 1998. Long-term macroeconomic prospects also looked good, with progress on structural issues (including privatization trade liberalization, and deregulation) set to accelerate. Following the Luxor attack, GDP growth forecasts for 1998 and into 1999 have been scaled down by as much as one-third from as high as 6% to possibly as low as 4%. Prior to Luxor, inflation had been expected to increase slightly in 1998 to about 6.5%, while the country's trade deficit was expected to widen. Foreign investment had picked up significantly, as had remittances from Egyptians working abroad.

Tourism, which accounts for about 5% of GDP, had been on course for a record year in 1997, with expectations of over 4 million visitors generating around $4 billion in revenues for the Egyptian economy. Following the attack, tourist cancellations left Egypt's hotels and ancient sites nearly empty. Egypt's Economy Minister Youssef Boutros Ghali (a former IMF economist and a strong advocate of economic reform who took office in a cabinet reshuffle in July 1997) said he expected Egypt to lose $500 million in current account receipts in the fiscal year ending June 30, 1998. The long-term impact on Egypt's economy remains uncertain, however.

With population growing 2.1% per year (and with high unemployment rates, especially among the country's poor), Egypt's economy needs to create an estimated 500,000 new jobs each year. Unofficial estimates place Egypt's jobless rate at 17%-19%, about twice the official unemployment rate. To lower this, Egypt needs to maintain a high rate of GDP growth, and to increase foreign investment. In 1997, foreign direct investment was officially estimated at $1.2 billion. As of late 1997, foreign exchange restrictions had been lifted, while the list of banned imports had been reduced to two broad categories (textiles and poultry).

Egypt's government plans to accelerate the country's privatization program during 1998. The program officially began in 1991/92 but has moved slowly, resulting in only three companies being privatized fully. Egypt's government now hopes to accelerate the process by targeting telecommunications and possibly other utilities, including the Egyptian Electricity Authority, for possible privatization. Overall, the country has about $12 billion worth of assets to sell. Meanwhile, Egypt is embarking on a push to increase non-oil exports infrastructure development, including large-scale plans to increase irrigated land near Lake Nasser (the "New Delta" project), in Western desert oases, and in the Sinai Peninsula.

In response to the massacre in Luxor, Egypt's government tightened security at tourist sites and hotels and intensified its hunt for Muslim militants. In mid-December 1997, Egyptian security forces stormed the hide-out of Munir Mustapha Mohammed Abdul-Hafiz, a leader in the militant Islamic Group, which claimed responsibility for the Luxor attack. Abdul-Hafiz was killed, and 10 of his followers arrested, in the raid.

Egypt's relations with Israel worsened noticeably during 1997. The main issue contributing to this decline was lack of progress in the Israeli-Palestinian process. Egypt largely faults Israel's government, led by Prime Minister Benjamin Netanyahu. Egypt also is upset with what it perceives as lack of sufficient U.S. pressure on Israel. In early January 1998, Egyptian Foreign Minister Amr Moussa accused the United States of failing to fulfill its "honest broker" role in the Middle East peace process. Another issue adding to tensions recently has been increased military coordination between Israel and Turkey. On January 4, 1998, the Arab League denounced a planned one-day naval exercise -- scheduled for January 7 -- between the Israeli, Turkish, and U.S. navies. Finally, Egyptian-Israeli relations have been strained over the conviction in Egyptian courts on August 31, 1997, of an Israeli Arab man charged with espionage. The verdict outraged Israel, which totally denied the charges.

Besides Israel, Egypt also has had strained relations recently with Qatar. In November 1997, Egyptian-Qatari ties worsened when Egypt joined several Arab states in boycotting the Middle East and North Africa (MENA) economic conference held in Doha, Qatar. In addition, Qatar's Foreign Minister in December 1997 accused Egypt of complicity in a failed 1996 coup attempt against Qatar's emir, Sheik Hamad bin Khalifa al-Thani. Finally, Egyptian-Qatari relations have been strained by differences on the Arab-Israeli peace process, including the possibility of natural gas supplies to Israel.

Sudan's foreign minister, Mustafa Osman Ismail, arrived in Cairo on January 12, 1998 for meetings aimed at paving the way for an Egyptian-Sudanese summit meeting. Bilateral relations have been tense since 1995, after Egypt accused Sudan of involvement in an assassination attempt against President Mubarak in Ethiopia. Sudan has denied the allegations.

Energy will continue to play an important role in Egypt's economy. Earnings from the export of petroleum products account for around 40% of the country's export revenues. The government has been relatively successful in curbing domestic growth for petroleum by reducing price subsidies and encouraging consumption of natural gas. Discovery and development of new natural gas finds, especially in the Nile Delta region, will soon allow Egypt to become a significant gas exporter.

OIL
Egypt produced an average 877,000 barrels per day (bbl/d) of crude oil during the first ten months of 1997. In recent years, Egypt's crude oil output has fallen from 920,000 bbl/d in 1995 and 922,000 bbl/d in 1996. Egypt is hoping that exploration activity, particularly in new areas, will discover sufficient oil in coming years to maintain crude oil production comfortably above 800,000 bbl/d. Egyptian oil production comes from 4 main areas: the Gulf of Suez (over 80%), the Western Desert (about 9%), the Eastern Desert (about 6%), and the Sinai Peninsula (about 5%). Egypt's proven crude oil reserves are estimated at 3.8 billion barrels.

Crude oil from the Gulf of Suez basin is produced mainly by the Gupco (Gulf of Suez Petroleum Company) joint venture between Amoco and Egypt's General Petroleum Corp. (EGPC). Production in the Gupco fields, which have been in operation since the 1960s, is falling rapidly, although it remains substantial at around 360,000 bbl/d. Gupco is attempting to slow the natural decline in its fields through significant investments in enhanced oil production as well as increased exploration. Despite this, oil output in the fields is expected to fall by as much as a 25% through 2001.

Next to Gupco, Egypt's second largest producer is Petrobel (Italian company Eni's Egyptian subsidiary), which produces around 290,000 bbl/d in a joint venture with EGPC. Petrobel is active mainly in the Gulf of Suez and Sinai. In 1997, Petrobel renegotiated all of its 12 development leases. This will allow the company to extend its oil exploration program in Egypt.

Egypt's overall oil production has declined more slowly than Gupco's due to new output coming from independent producers (like Apache and Seagull Energy) at smaller fields in the Western Desert region. Crude production in the Qarun block, for instance, surpassed 40,000 bbl/d in mid-1997, up from 5,000 bbl/d in late 1995. In October 1997, Apache and Seagull announced a "significant" oil discovery in the East Beni Suef concession (which they share 50/50), also in located in the Western Desert. The field is said to contain 100 million barrels or more of crude oil.

Besides Apache and Seagull, Spain's Repsol is also a leader in oil discoveries outside established production zones. Repsol is currently expanding its oil output in Egypt's Western Desert to 60,000 bbl/d (from 32,000 bbl/d in early 1997). Repsol is part of a venture with EGPC and Apache, and operates the Khalda oilfield. Other smaller oil companies involved in Egypt include: Ireland's Tullow Oil, U.S. Petra Oil, South Korea's Samsung and Yukong, and Canada's Cabre Exploration.

Refining and Petrochemicals
Egypt's eight refineries have the capacity to process more than 546,000 bbl/d of crude, with the largest refinery being the 141,000 bbl/d Mostorod refinery outside of Cairo. The government has plans to increase production of lighter products, petrochemicals, and higher octane gasoline by expanding and upgrading existing facilities. In addition, Egypt's Ministry of Petroleum plans to build five new refineries and petrochemical plants valued at $2.5 billion.

Egypt's refinery expansion plans include construction of a 35,000 bbl/d hydrocracker at the El-Nasr Petroleum Company refinery in Suez, and a doubling of capacity at the refinery in Assyut to 100,000 bbl/d. In September 1997, a $33 million management contract was awarded to U.K.-based Kvaerner John Brown for the El-Nasr hydrocracker project, which is expected to cost $450 million.

EGPC is planning to increase production of lube oils by expanding the existing facility at its El-Mex refinery in Alexandria. In May 1997, EGPC signed a $300 million contract with Toyo Engineering to build Egypt's first steam cracker. The cracker is to be fed by ethane and to have a capacity of 300,000 tons per year. It is scheduled to open in late 1999.

A contract for construction of the 100,000 bbl/d, Egyptian-Israeli joint venture MIDOR (Middle East Oil Refinery Ltd.) refinery in Alexandria entered into effect in July 1997. The facility is expected to cost about $1.3 billion and will include a 25,000 bbl/d hydrocracker. MIDOR will be Egypt's first export refinery, with only 20% of the products being consumed locally. The project represents the largest Arab-Israeli joint venture to date. In January 1997, EGPC acquired an additional 20% equity from Israel's Merhav Mnf. Ltd. and from the local Hussein K. Salem Group to push its share in the venture to 60%. Each of the private investors retains a 20% share in the project. Spain's Repsol is set to manage the plant when it comes online in 2000.

Expansions are also being planned for Egypt's petrochemical sector. The Oriental Petrochemicals Company, a local private venture, is planning to build a polypropylene plant in Alexandria that will utilize natural gas from Western Desert fields as feedstock. The plant is expected to cost about $80 million and to produce more than 120,000 metric tons of polypropylene annually. The Egyptian Petrochemicals Company (EPC), a subsidiary of EGPC, has announced plans for two new petrochemical plants. The first is for an ethylene plant with the capacity to produce 331,000 tons annually. A polyethylene plant with capacity of 220,000 tons also is planned, with the license for the plant having been awarded to BP Chemicals of the United Kingdom. Finally, Phillips Petroleum is looking to establish a joint venture in Egypt to build a polyethylene plant with an annual capacity of 150,000 tons. The plant would use natural gas (ethane) as a feedstock.

Suez Canal / Sumed Pipeline
In addition to its role as an oil exporter, Egypt has strategic importance because of its operation of the Suez Canal and Sumed (Suez-Mediterranean) Pipeline, two routes for export of Persian Gulf oil. Tanker traffic and revenues have declined in recent years as a result of competition from oil pipelines and the alternate route around the Cape of Good Hope in South Africa. As part of its efforts to win back market share, the Suez Canal Authority (SCA) announced in late December 1997 that it would not raise canal transit fees for the fourth year in a row. The SCA also will offer a 35% discount to liquefied natural gas (LNG) tankers in 1998, as well as other discounts for oil tankers.

The SCA is continuing enhancement and enlargement projects on the canal. The canal has been deepened so that it can accept the world's largest bulk carriers, but it will need to be deepened further to 68 or 70 feet to accommodate fully laden very large crude carriers (VLCCs). . Additional dredging is planned to reach a depth of 62 feet by the year 2000. The SCA has attempted to reach an agreement with its main competition for northbound crude traffic, the Sumed pipeline. Such an agreement could bar any tanker small enough to traverse the canal from transporting oil through the pipeline. The SCA offers incentives for tankers to off-load a portion of its cargo through the Sumed, allowing for passage through the canal, and reloading at the other end of the pipeline. In early January 1998, an oil products tanker hit the jetty at the Al Addabiah oil terminal, closing the oil berth at the port of Suez for up to a month.

The Sumed pipeline is an alternative to the Suez Canal for transporting oil from the Gulf region to the Mediterranean. The 200-mile pipeline runs from Ain Sukhna on the Gulf of Suez to Sidi Kerir on the Mediterranean. The Sumed's original capacity was 1.6 million bbl/d, but with completion of the Dashour pumping station, which is located south of Cairo, capacity has increased to 2.5 million bbl/d. The pipeline is owned by the Arab Petroleum Pipeline Company (APP), which is a joint venture between Egypt (50%), Saudi Arabia (15%), Kuwait (15%), the U.A.E. (15%), and Qatar (5%). The APP also has been increasing storage capacity (to 24 million barrels) at the Ain Sukhna and Sidi Kerir terminals. An extension of the pipeline is being studied. This extension would traverse the Red Sea from Ain Sukhna to the closest point on the Saudi coast near Sharm al Sheikh, and then continue to link up with the terminal of Saudi Arabia's main east-west pipeline in Yanbu.

Egypt and Libya have announced plans to build a crude oil pipeline. The 600 km (375 mile), 150,000 bbl/d line would transport Libyan crude from Tobruk to Alexandria for refining and sale in Egypt. The pipeline is expected to cost $300 million pipeline, and should take 3-4 years to complete.

NATURAL GAS
Egypt's natural gas sector is expanding rapidly, with production expected to double by 2001. In recent years, proven natural gas reserves have increased significantly, with a string of major discoveries along the Mediterranean Coast/Nile Delta region and in the Western Desert, and this trend is likely to continue. Currently, the country's proven gas reserves are estimated at 27.6 trillion cubic feet (Tcf), up 35% from 20.4 Tcf in 1997, and nearly double the 15 Tcf of proven reserves in 1993. Reserves are expected to increase even more in the next few years. Most of this increase has come about as a result of new gas discoveries in the Mediterranean offshore/Nile Delta region, and increasingly in the Western Desert. In the Nile Delta, which has emerged as a world-class gas basin, recent offshore field developments include Port Fuad, South Temsah, and Wakah. In the Western Desert, the Obeiyed Field is an important natural gas area currently under development. Overall, more than half of Egypt's natural gas production comes from just two fields: Abu Madi (on stream since the 1970s) and Badreddin (since 1990). Abu Qir is the third largest field, and like Abu Madi is considered mature.

The International Egyptian Oil Company (IEOC), a subsidiary of Italy's ENI group, is Egypt's leading natural gas producer. In cooperation with Amoco, IEOC has been concentrating its natural gas exploration and development efforts in the Nile Delta region. The companies are in the initial stages of a $1 billion development program expected to yield about 365 billion cubic feet (Bcf) annually beginning in 2000. On November 4, 1997, Amoco (along with its partners EGPC and IEOC) announced plans to develop the giant Ha=py gas field in the Ras el-Barr concession of the Nile Delta region at an estimated cost of $248 million. The gas (up to 2 Tcf annually) is to be marketed domestically beginning in 1999. In September 1997, IEOC tested the Temsah (offshore Nile Delta) gas field at 11.6 million cubic feet per day (mmcf/d).

Two areas in the Western Desert -- Obeiyed and Khalda -- have shown great potential for increasing Egypt's gas production in the near future. The Obeiyed gas field is expected to start producing 300 mmcf/d by 1999. At the Khalda concession, production of 200 mmcf/d, starting in 1999, is expected from the Salam fields. In addition, Repsol (along with partners Apache and Samsung) in early 1997 announced a significant gas discovery at Khalda. Output from Obeiyed and Khalda will be transported to Alexandria by a 300 km (180 mile) pipeline. Amoco and the IEOC also are preparing to bring several fields off the Nile Delta coast into production. These include the Baltim and Baltim South fields, expected to come online by 1999, and fields on the Temsah and Ras el-Barr concessions by 2000.

Other companies with recent gas finds in Egypt include: Petrobel (the Sigan-1 field), Agip/EGPC (Wakkar), and the U.K.-based BG Group (Rosetta-5 and Rosetta-6). All three of these finds are in the Nile Delta region. The BG Group is made up of BG Exploration and Production (40%), Shell Egypt (20.4%), Shell Austria (19.6%), and Italy's Edison (20%). Gas deliveries from the Rosetta concession are expected beginning in 2000. In other developments, Amoco has found significant gas reserves in its North Sinai concession, while Apache is expecting its natural gas output in Egypt to grow five-fold between 1997 and 2000, reaching nearly 15 Bcf per year.

The rapid increase in Egypt's natural gas reserves and production in recent years has encouraged Egypt in ambitious plans for gas exports (either by pipeline or liquified natural gas tanker) to such countries as Turkey, Israel, Jordan, and the Palestinian territories. Currently, Egypt consumes all the gas it produces. Plans for exporting Egyptian gas have been complicated by pricing issues -- specifically, how much exported gas should cost relative to domestically-consumed gas. Egypt and Turkey agreed in 1996 on a framework for gas pricing, but failed to settle on a price that remains competitive with Turkey's other suppliers without undercutting Egyptian domestic gas prices. In August 1997, Egypt officially announced that it would open its natural gas pipeline and marketing sectors to private participation.

Egypt's government has edged towards freer gas prices in recent months. On December 9, 1997, Egypt's cabinet approved raising the state-controlled price of gas for the local market by about 17% effective January 1, 1998. The cabinet also agreed to limit natural gas price increases to 25% through 2005. In order to encourage gas demand (as a substitute for oil), to free up more oil for export, domestic gas prices are kept artificially low. As a result, EGPC loses money on domestic gas sales. Natural gas demand is growing rapidly in Egypt, mainly as thermal power plants, which account for about 65% of Egypt's total gas consumption, switch from oil to gas.

An agreement was signed in November 1996 between EGPC, Amoco and Botas of Turkey to supply Turkey with 350 Bcf of LNG per year starting in 2000 or 2001. In December 1997, ENI affiliate SNAM joined with Amoco and EGPC on a large ($2-$4 billion) project to export gas to Turkey. The project includes a $1.2 billion LNG export facility to be built on the Egyptian coast west of Port Said. ENI had previously supported building a pipeline either under the Mediterranean or overland through Israel and Lebanon. Now, ENI/SNAM holds a 45% stake in the LNG project, with Amoco holding 45% and EGPC 10%. In addition, Botas and Amoco are to construct regasification facilities near Izmir, Turkey.

The so-called natural gas "Peace Pipeline" to Israel appears to be stalled along with the Middle East peace process. If the pipeline is ever built, it is expected to originate in Port Said and run to Israel via the Gaza Strip. Plans include possible extensions to Lebanon, and a spur to Jordan. The original agreement was to supply Israel with 70 to 85 Bcf of gas per year commencing in 1999. Besides politics, several other factors (including the price of gas and the lack of gas infrastructure in Israel) have caused this project to be placed on the shelf for now. Israel's government is encouraging the development of a larger role for natural gas in the country's fuel mix. By 2001, three existing Israel Electric Corporation (IEC) power plants on the Mediterranean coast at Ashdod, Tel Aviv, and Haifa are to have switched from fuel oil to natural gas, and are to be consuming a combined 70 Bcf per year.

In October 1997, EGPC and IEOC signed an agreement under which IEOC will build a $60 million, 140 Bcf-per-year natural gas pipeline from the Nile Delta offshore region under the Suez Canal into northern Sinai. In July 1997, Egypt and Jordan started negotiations on a possible gas pipeline across the Sinai and under the Red Sea to the southern Jordanian port city of Aqaba, where the line would link with Jordan's national gas grid. If built, the line would carry 200 mmcf/d beginning in 2001 or 2002, possibly rising to 400 mmcf/d depending upon demand.

ELECTRIC POWER
With electricity demand growing 5%-7% annually, Egypt is building several power plants and is considering limited privatization of the electric power sector to attract new investment. Egypt currently has installed generating capacity of 16 gigawatts (GW), with plans to add 2.5 to 3.0 additional GW by 2005. This includes a 1.2 GW gas-fired power plant at Kureimat, about 60 miles east of Cairo. The Kureimat plant received $200 million in financing from the United States Agency for International Development.

A 650-megawatt (MW), dual-fired (natural gas and fuel oil) plant is to be built (by 2000) west of Alexandria on the Mediterranean coast at Sidi Kerir. Another power plant is slated for Ayun Musa in the western Sinai The two plants are being built by a consortium comprising Bechtel, the Egyptian Electricity and Energy Ministry, and the Arab African International Bank. In other news, two 60-MW wind farms were scheduled to start operating at the end of 1997. The facilities are located in Zaafarana on the Red Sea coast, where a 6-MW wind farm is already in service. Meanwhile, the World Bank agreed in December 1997 to grant $50 million towards a new power plant to be solar-powered by day and natural-gas-fueled by night. The plant is to be built near the existing Kureimat station

Egypt also is planning to add generating capacity by utilizing Build, Own, Operate and Transfer (BOOT) financing schemes to construct power plants. BOOT projects are used to fund large-scale public infrastructure without affecting the country's debt profile. Private developers are allowed to recover their costs of construction through ownership and operation of the plant for a fixed period before handing it over to the state. The first BOOT project is a dual-fired (fuel oil and gas) power plant with two 325-MW generators to be located at Sidi Kerir or on the Gulf of Suez. The plant is expected to cost about $540 million and to begin operation in 2001. Two other possible BOOT projects are a $600 million, 650-MW pumped storage facility at Mount Ataqa on the Gulf of Suez; and a $350 million, 300-MW wind farm at Zaafarana. Additional BOOT projects are currently being studied, including a 1.2-GW plant at El-Nobaria in the Delta and a 1.3-GW dual-fired (fuel oil and gas) plant at a location to be determined. These projects, if approved, would begin operation by 2007.

Work is continuing on the linkage of Egypt's electricity network with other countries in the region. The $150 million link with Jordan is expected to be completed by early 1998. The first phase of the Five-Country interconnection of Egypt's system with those of Jordan, Syria, Turkey, and Iraq is scheduled to be completed in 1998. This interconnection will be finished by 2002, when links to Iraq from Syria and Turkey are completed. Construction of the Arab Maghreb Interconnection, linking the systems of the North African countries, continues with work on the Egypt-Libya, and Libya-Tunisia connections. Other interconnections with Egypt's electricity network are being studied, and they include an Arab Mashreq (Egypt, Bahrain, Jordan, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen) Interconnection, and an interconnection of Egypt with Israel, Jordan, and the Palestinian Authority. The Arab Maghreb and the Five-Country interconnections will help form an even larger system interconnection, the Mediterranean Power Pool (MPP), which will link the Middle East, North Africa, and Europe. The antcipated completion date of the MPP is 2015.

On November 26, 1997, a 22-MW nuclear research reactor became operative. The plant was built by an Argentine company in accordance with regulations of the International Atomic Energy Agency (IAEA), and will be open to international inspection. The reactor will be used for work on nuclear medicine, materials testing, basic research, and nuclear technology.

COAL
Coal production started in 1995 at the El-Maghara mine on the Sinai Peninsula. Overall, Egypt has an estimated 23 million short tons (mmst) of recoverable reserves in the mine and an additional 17 mmst in an extension west of the current facility. The mine is expected to be at its full production capacity of 0.7 mmst by 1999. The government is planning to invest $59 million to expand the port of El-Arish to handle exports from the mine. The mine currently exports coal to Turkey, and it plans to supply coal to power plants and a cement factory to be built in Sinai.

ENVIRONMENT
Egypt plans to increase the number of natural gas vehicles (NGVs) in Cairo and other major urban centers, and also to phase out the use of leaded gasoline. EGPC has agreed to purchase 88,000 tons of methyl tertiary butyl ether (MTBE) from Saudi Arabia's Sabic (Saudi Basic Industries Corporation). The MTBE will be used to replace lead in motor gasoline as part of the government's efforts to cut lead emissions and improve air quality.

COUNTRY OVERVIEW
President: Mohammed Hosni Mubarak
Prime Minister: Kamal Ahmed al-Ganzouri
Independence: February 28, 1922 (from the United Kingdom)
Population (1997E): 62 million
Location/Size: Northern Africa/1,001,450 sq. km (386,662 sq. miles), about the size of Texas and New Mexico
Major Cities: Cairo (capital), Alexandria, Giza, Port Said
Languages: Arabic (official), English, French
Ethnic Groups: Egyptian, Bedouin, and Berber compose 99% of the population
Religions: Sunni Muslim (94%), Coptic Christian (6%)
Defense (8/96): Army (310,000), Air Defense Command (80,000), Air Force (30,000), Navy (20,000), Reserves (254,000)

ECONOMIC OVERVIEW
Currency: Pound (,E)
Market Exchange Rate (12/97): ,E 3.39 = $1 U.S.
Gross Domestic Product (GDP - market exchange rate, current dollars) (1997E): $74.6 billion
Real GDP Growth Rate (1997E): 5.4%
Inflation Rate (1997E): 5.6%
Current Account Balance (1997E): $0.1 billion
Major Trading Partners (1996): United States, Italy, Germany
Merchandise Exports (1997E): $5.1 billion
Merchandise Imports (1997E): $14.8 billion
Merchandise Trade Balance (1997E): -$9.7 billion
Major Export Products (1995/96E): Crude oil and petroleum products (48%); cotton yarn and textiles (13.5%); engineering and metallurgical goods (8.6%); agricultural goods and raw cotton (5.2%)
Major Import Products (1995/96E): Machinery and electrical appliances (22.5%); foodstuffs and livestock (21.8%); wood, paper, and textiles (10.4%); iron and steel (9.5%)
Oil Export Revenues (1996/97E): $1.6 billion
Oil Export Revenues/Total Export Revenues (1996E): 46%
Total External Debt (1997E): $33 billion

ENERGY OVERVIEW
Energy Ministers: Hamdi el-Banbi (Minister of Petroleum), Muhammad Maher Abaza (Minister of Electricity and Energy)
Proven Oil Reserves (1/1/98): 3.8 billion barrels
Oil Production (1st 10 months 1997E): 936,000 barrels per day (bbl/d), of which 877,000 bbl/d is crude oil
Oil Production Capacity (1997E): 936,000 bbl/d
Oil Consumption (1996E): 470,000 bbl/d
Net Oil Exports (1997E): 460,000 bbl/d
Crude Refining Capacity (1/1/98): 546,060 bbl/d
Natural Gas Reserves (1/1/98): 27.6 trillion cubic feet (tcf)
Natural Gas Production (1996E): 0.5 tcf
Natural Gas Consumption (1996E): 0.5 tcf
Coal Reserves (1996E): 58 million short tons (mmst)
Coal Production (1996E): Less than 1 mmst
Coal Consumption (1996E): 1.2 mmst
Electricity Generation (1996E): 46.0 billion kilowatthours
Electric Generation Capacity (1/1/96E): 16.0 gigawatts (83% thermal, 17% hydroelectric)

ENVIRONMENT OVERVIEW
Total Energy Consumption (1996E): 1.6 quadrillion Btu
Energy Consumption per Capita (1996E): 27.1 million Btu (vs. 351.9 million Btu in the U.S.)
Energy Consumption per $1987 of GDP (1996E): 35.67 thousand Btu (vs. 16.67 thousand Btu in the U.S.)
Energy-related Carbon Emissions (1996E): 25.8 million metric tons (0.4% of the world total)
Carbon Emissions per Capita (1996E): 0.43 metric tons per person (vs. 5.53 metric tons in the U.S.)
Carbon Emissions per Thousand $1987 (1996E): 0.56 metric tons (vs. 0.26 metric tons in the U.S.)
Major Environmental Issues: Rapid population growth continues to exacerbate Egypt's environmental problems, including air pollution from transportation and industry, as well as water pollution of the Nile River

OIL and GAS INDUSTRIES
State Oil Company: Egyptian General Petroleum Corporation (EGPC) plus 11 smaller, state oil companies
State Pipeline Companies: Sumed-Arab Petroleum Pipeline Company (APP), Domestic pipelines-Petroleum Pipelines Company (PPC), Export gas pipelines-Egypt Trans-Gas Company (EGTC)
Major Foreign Oil Company Involvement: Amoco, Apache, British Gas, British Petroleum, Cabre Exploration, Deminex, Elf Aquitaine, ENI-Agip, Exxon, Marathon, Norsk Hydro, Petra Oil, Repsol, Royal Dutch Shell, Samsung, Texaco, Total, Tullow Oil, Yukong
Major Ports: Sidi Kerir, Ras Shukheir, Suez, Ain Sukhna
Major Oil Fields: Belayim Marine, October, Morgan, Belayim, Badri, Ras Budran
Major Gas Fields: Abu Madi, Abu Qir/North Abu Qir, Shukheir, Badreddin
Major Pipelines (capacity): Sumed pipeline (2,500,000 bbl/d)
Major Oil Refineries (crude oil capacity): Mostorod - Cairo Petroleum Refining Company (141,000 bbl/d), El-Nasr - Nasr Petroleum Company(99,000 bbl/d), El-Mex - Alexandria Petroleum Company (95,000 bbl/d), Suez - Suez Oil Processing Company (63,000 bbl/d)

For more information from EIA on Egypt, please see:
EIA - Country Information on Egypt

Links to other sites:
1997 CIA World Factbook - Egypt
U.S. Department of Energy's Office of Fossil Energy's International section - Egypt
U.S. State Department's Consular Information Sheet - Egypt
U.S. State Department Background Notes on Egypt - March 1995
Country Report on Economic Policy and Trade Practices - Egypt (1996) - U.S. Department of State
CIA Atlas of the Middle East

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.
Egypt Economic Indicators by The Egyptian Cabinet, Information and Decision Support Center
Suez Canal Statistics by The Egyptian Cabinet, Information and Decision Support Center
Organization for Energy Conservation & Planning - Egypt
Energy Statistics from the Organization for Energy Conservation & Planning - Egypt
U.S. Embassy in Egypt
Egyptian Consulate in the United States
The Center for Middle Eastern Studies - Egypt
University of Pennsylvania African Studies Program - Egypt
ArabNet: Egypt
MBendi Information Services Country Profile - Egypt
Country Commercial Guide for Egypt from Tradecompass
Cairo Economic Conference for Middle East & North Africa (MENA CAIRO `96)

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File last modified: January 20, 1998

Contact:

Lowell Feld
lfeld@eia.doe.gov
Phone: (202)586-9502
Fax: (202)586-9753

URL: http://www.eia.doe.gov/emeu/cabs/egypt.htm