Minister of Petroleum and Mineral Resources Eng. Sherif …

1 Petroleum AND MINING SECTOR IN EGYPT Unlocking Egypt s Energy Potential Minister of Petroleum and Mineral ResourcesEng. Sherif STRENGTHS & FOR THE MESSAGESE gyptian Aspirations3 Enhance living standards and alleviate povertyImprove public servicesIncrease job opportunitiesRestore Egypt s Regional and International Leading roleRealize Significant Growth RateA Clear Vision to Achieve Egyptian Aspirations4 Strategic ObjectivesStrategic Objectives Ensure energy Security and satisfy domestic demand Maximize Added Value of Egypt s natural Resources Build National Capacities with high efficiency The Vision The Vision Secure local energy demand within reasonable prices to fuel sustainable economic development & realize Egyptians aspirations for better lifeEnergy

2 Security52730343841465260677273010203040 50607080 Million TonsPetroleum ProductsNatural Gas605 Million Tons348 Million TonsAlmost double the previous period Supply demand deficit and financing Current supply deficit of 700 MMSCF/day for gas IOC ArearsRising Consumption driven by Population growth, high energy intensity and subsidies6 Energy Security Infrastructure Development Market StructureOil and gas96%Coal1%Hydro3%EgyptAnd Refinery ComplexityPrimary Energy Mix Unbalanced Energy MixFinancial Sustainability And 102030% of GDP% of BudgetHealthEducationFuel subsidiesComparison of energy (including electricity) subsidies with social spendingOverview of energy subsidies3271282764 SocialSecurityFoodSubsidyPetroleumSubsid yHealthEducation51timesSocial Security 2 times EducationBudget5 timesHealthBudget5 timesFoodSubsidy Energy Subsidy Sector GovernanceThe Egyptian Oil & Gas sector.

3 A Unique Position8In Global Gas ProductionGas Producer in AfricaNon-Opec Oil Producer in AfricaWorldwide in Gas Reserves -~ 1% of global reserves121516 Significant development potential with a robust, multi-decade track-record of success Substantial Exploration Potential Increase focus on Upstream Activities Continuous Upgrade and Expansion of Infrastructure Leverage Egypt s Location to potentially become a regional Energy Hub and a vibrant ecosystem for Petroleum STRENGTHS & FOR THE MESSAGESThe strategy for the sector comprises 3 strategic pillars and 8 action areas, supported by 23 separate policy measuresEnergySecurityBoost energy supply Diversify energy supplyManage energy demandFinancialSustainabilityAddress historic debts (arrears)

4 Reform energy subsidiesAddress internal debtsSectorGovernanceModernize sector governanceBoost private sector investment10 Petroleum Sector Strategic Pillars and Action Areas23 policy measures5 action areas and supporting policy measures have particular relevance for investorsEnergySecurityBoost energy supply Diversify energy supplyManage energy demandFinancialSustainabilityAddress historic debts (arrears)Reform energy subsidiesAddress circular internal debtsSectorGovernanceModernize sector governanceBoost private sector investment11 Petroleum Sector Strategic Pillars and Action Areas23 policy measures12345 Boost Energy Supply 12 Policy measuresEncourage new gas expl.

5 & developmentSecure new LNG import contractsExpand & upgrade infrastructureProgress to date $13 billion of ongoing and planned gas developments 56 upstream agreements signed, $12 billion minimum expenditure Por ts Refineries Por t ShipmentsAccelerate existing gas field developments1 FSRU Pipeline Pipelines & Storage Marketing13 Boost Energy Supply 1 Boost Energy Supply 14 Policy measuresEncourage new gas expl. & developmentSecure new LNG import contractsExpand & upgrade infrastructureProgress to date $13 billion of ongoing and planned gas developments 56 upstream agreements signed, $12 billion minimum expenditureAccelerate existing gas field developments1 Por ts Refineries Por t Shipments FSRU Pipeline Pipelines & Storage MarketingDiversify Energy152 Primary Energy MixPolicy measuresProgress to date Launched Discussion to Introduce New Sources of Energy Develop Cyprus Gas Utilizing Egypt LNG Facilities Diversify Energy Mix Strengthen Regional Energy TradeOil and gas61%Coal20%Nuclear10%Other9%Global EnergyOil and gas96%Coal1%Hydro3%EgyptAnd IncreasingAddress Historical Debts1609/1008 to IOCs ($ billion) 14 - Dec.

6 14 Jul. 13 - Jun. 14 IOC Receipts & Payments($ billion)ReceiptsPaymentsPolicy measuresProgress to date Restore EGPC Financial Balance $ billion in arrears paid from July December Subsidies: A 5-Year Plan174 Policy measuresProgress to date Adjust energy prices to cost recovery levels by 2019 Improve subsidy Administration July 2014 announcement on comprehensive subsidy reform million smart cards 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Billion LEInitial budget70bn100bnRevised budgetExpected ValueModernize Sector Governance185 PolicyRegulationMarketMinistryEGPC, EGASM inistryRegulatorEGPC, EGAS,Other SuppliersMinistryEGPC, EGAS.

7 PastCurrentFutureShadow RegulatorPolicy measuresProgress to date Modernize Gas Sector Shadow Regulator EstablishedMoving Towards Free MarketMining Sector Plan19 Increase Mineral Resources contribution to Egypt GPD to more than 5% in 10 years New Mining Law Restructuring of Mineral Resources Sector and capacity building Reduce Exports of Raw Materials to maximize added value Regularly issue new bid rounds Develop A Master Plan to include integrated industrial complexes to maximize added value Example The Golden Triangle ProjectThe Golden Triangle project in Upper Egypt aims at establishing a World Class Economic Zone including Mineral Extraction, Industrial Facilities, Commercial Hub, and Touristic Zones.

8 New Mining Law Highlights20 Generating decent revenues to the state Maximizing added value A special law to govern the exploration and concession agreements for areas exceeding 16 km2 through international tenders Allocation of 1% of the output for social development within the relevant governorate for the area being developed Allows different models of exploration STRENGTHS & FOR THE MESSAGESS ignificant Investment by Sub-Sector to 2022 The Strategy requires investment of $70 billion through 2022, including $25bn of new investment(Ongoing Awarded Open for Investment)$ billion InvestmentsMIDORR efinery Expansion$ billion MMT/Y Ethylene MMT/Y Poly-EthyleneANRPCC atalytic Reforming$250 million Gasoline / LPG / Hydrogen-rich gasMajor Downstream Projects Recently Awarded/Ongoing 24 PPCS okhna-Tebeen Pipeline$174 millionERCH ydrocracker Complex$ billion MMT/Year LPG / Jet Fuel / Gasoline/Gas Oil/ Coke / Sulphur 170km Fuel Oil / Gas OilETHYDCOE thylene & Poly Ethylene$ billion MMT/ Year Gasoline / DieselASORCCCR$250 billionPPCBeni Sweif-Menia Pipeline$60 million MMT/YGasoline 145km Fuel Oil / Gas OilUpstream Investment Opportunities25 EGAS 2015 Bidding RoundGANOPE 2015 Bidding Round 8 shallow-water blocks 10 onshore blocks (W.)

9 Nile, E. Nile, S of Gulf of Suez) Data available from EGAS and GANOPE Closing date 31stMay, 2015A total of 18 new blocks are offered for exploration in two recent bid roundsReady NowShort-TermMedium-TermDownstream Investment Opportunities: $18 billion26 Downstream Investment Opportunities$ billionAssiut - Sohag LPG Atmospheric Distillation UnitPropylene and DerivativesCCR & IsomerizationRe- Habilitation Coking complexFull Conversion Hydrocraker ComplexAromatics & Fertilizers ComplexGold Mining RoundBio-Ethanol from MolassesFormaldehyde and DerivativesMineral Resources Bid RoundMinia-Assiut Product PipelineSohag - Aswan Product Hamra Petro-Refinery Hub Lubrication Oil from Rice MisrPetr.

10 Basin, Bunkering and / Egypt s Energy Potential27 Value of InvestmentAssiut - Sohag LPG PipelineMineral Resources Bid RoundBio-Ethanol from MolassesSohag - Aswan Product PipelineBio-Ethanol from Rice StrawGanope 2015 Bid RoundNew Lubrication Oil ComplexEGPC 2015 Bid RoundEGAS 2015 Bid RoundPhosphate MisrFull Conversion Hydrocracker ComplexReadiness for ImplementationPetr. Basin, Trade and Solar Energy2017 Bid RoundsEl Hamra Petro-Refinery Hub ProjectGlass SandMinia-Assiut Product PipelineFormaldehyde and DerivativesGold Mining RoundNew Atmospheric Distillation UnitCCR & IsomerizationRe- Habilitation Coking complex2016 Bid RoundsAromatics & Fertilizers ComplexPropylene and DerivativesStrong Investment LandscapeMedium-TermShort-TermReady STRENGTHS & FOR THE MESSAGESS trategic Objectives.