ENERGY-

#1- BP to ramp up production: Global energy giant BP plans to invest USD 400 mn during the current fiscal year to drill two new wells at the Raven natural gas field in its North Alexandria concession, Asharq Business reports, citing an anonymous government official. The two wells will add a combined daily 400 mn cubic feet of gas to its output. The first well will go live next month — adding some 200 mn cubic feet of gas and 8k barrels to the company’s overall output — and the second will go live in February.

More and earlier than expected: Last July, the Oil Ministry said that BP plans to invest some USD 200 mn to drill two new wells at its Raven field, with the new wells adding 200 mn cubic feet of gas to its overall output by the third quarter of the fiscal 2024-2025.

Oil players have been ramping up their activity in Egypt after the government started clearing its arrears to foreign oil and gas companies operating in the country and the recently-introduced incentive package for oil and gas players helped sweeten the pot even further.

#2- Agiba to bring three more rigs online this week: Agiba — a JV between energy giant Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC) — will start operating three of its rigs next week, Eni announced yesterday. This came during Oil Minister Karim Badawi’s visit to Italy to meet with Eni officials and look into enhancing cooperation between Egypt and the Italian oil giant.

ICYMI: Prime Minister Moustafa Madbouly said last month that the oil minister will be meeting with foreign energy players with the aim of boosting local production starting early 2025. After months of blackouts and then setting aside USD 1.2 bn for energy imports, the government has been noticeably more proactive in its efforts to try to get local energy production rates back up.

HOSPITALITY

Red Sea hotels have raised their prices some 10-15% during 2024 so far, Red Sea Tourism Investment Association Chairman and Pickalbatros Hotels & Resorts CEO Kamel Abou Aly told Al Arabiya. In tandem with this, average occupancy rates in Red Sea hotels rose to 75% over the past two months, he added.

MANUFACTURING-

Another fertilizer factory incoming: Local agricultural development firm Juba plans to set up its first fertilizers and agricultural nutrients factory — in partnership with local investors — with plans to kick off operations for the EGP 50 mn facility in early 2027, chairman Eslam Madina told Al Mal. The factory will be set up on a 3k sqm plot in Sadat City and will have a production capacity of 350-400 tons a month during its first year, which will then increase to up to 500 tons by early 2028. The company will initially produce 20 products with plans to expand its portfolio to 100 products by 2029.

Exports on the agenda: The is looking to tap two new export markets — Saudi Arabia and Lebanon — with plans to earmark 30% of its production to exports.

LOGISTICS-

Loading and unloading companies at ports told to upgrade equipment: The Alexandria Port Authority has instructed companies involved in loading and unloading cargo from ships — known in the industry as stevedoring — to develop a five-year plan for upgrading their equipment, AlMal reports, citing a circular by the authority. The initiative, which will prohibit companies from using outdated equipment after the five-year deadline, aims to align shipping and unloading rates with global standards.

DEBT-

El Araby Group secures EGP 1.9 bn loan: Electronics and home appliances manufacturer ElAraby Group has secured EGP 1.9 bn in financing from the Suez Canal Bank, AlMal reports, citing sources it says are in the know. The funds include a five-year EGP 1.1 bn loan for expanding logistical capabilities and upgrading equipment in addition to a short-term EGP 800 mn loan for boosting working capital and facilitating local purchases.

CAPITAL MARKETS-

All aboard the carbon market: The Financial Regulatory Authority (FRA) has registered 12 new carbon reduction projects to its newly-launched carbon market, according to a statement from the authority. All 12 projects are certified under Egyptian Biodynamic Association’s Economy of Love standard, which aims to support small-scale farmers as they switch to organic and biodynamic farming methods. They will offer over 13.2k carbon credits that will help reduce 13.3k tons of carbon emissions.

Remember: Egypt launched Africa’s first carbon market last month, allowing companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.

FINTECH-

A new fintech accelerator in town: EG Bank launched the MINT fintech accelerator, in partnership with USAID’s Business Egypt program and DAI Egypt, according to a statement (pdf). The accelerator aims to support fintech startups by providing funding, training, and mentorship as well as connecting entrepreneurs with potential partners.

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