Briefs

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Shell ambitions

SHELL Egypt is starting a new offshore shallow water drilling campaign in its North West Damietta concession. "Exploration is the mainstay of Shell Egypt's growth strategy, and we are strongly committed to capitalising on the enormous opportunities for Shell's upstream business in Egypt,"said Zainul Rahim, chairman of Shell Companies in Egypt and managing director of Shell Egypt. Rahim added that Shell is pursuing very ambitious offshore and onshore exploration programmes in 2006 and will continue to do so in 2007 and beyond.

Shell has recently signed a Farm-in Agreement with Centurion Energy to acquire a 50 per cent share in two of the company's concessions in the onshore Nile Delta, as part of Shell Egypt's portfolio development. "When these exploration operations are completed, we hope to have significantly grown our resource base and increased our reserves in the country,"noted Rahim. He continued that Shell is partnering with the government to enable Egypt to access many of its yet untapped potential reserves in the hydrocarbon-rich provinces in the Nile Delta and Western Desert.

Enterprising programme

MINISTER of International Cooperation Fayza Abul-Naga announced that the US Economic Assistance Programme is providing $165.6 million to finance a programme to establish small and micro enterprises, as a means to address the unemployment problem.

The new programme will be implemented by a number of Non-Governmental Organisations (NGOs) registered with the Ministry of Social Solidarity, and located in different governorates such as Cairo, Giza, Port Said and South Sinai.

Abul-Naga said that the NGOs which are implementing small and micro enterprise programmes received 35,282 loans, amounting to LE130.2 million between April and June, 2006. The programme is expected to eventually expand to include the governorates of Assiut, Minya and Fayoum.

Several banks have also made a contribution to the programme such as the Greater Cairo branches of the National Bank for Development (NBD), and a number of branches of Banque du Caire located throughout the country. In a press release issued this week, the minister highlighted the success of participating banks, noting that NBD approved some 4,912 loans worth LE15.2 million between April to June, 2006; Banque du Caire issued 29,060 loans amounting to LE115 million.

Cement prices capped

THE PRICES of bagged cement were capped at LE290 per tonne for ex-factory and LE330 per tonne for retail sales last week, following a spiral increase in prices recently. Minister of Industry and Trade Minister Rachid Mohamed Rachid announced the new prices during a meeting with local cement producers and traders, to discuss the reasons behind the hike in prices that had reached LE390 per tonne on the retail market.

Rachid also introduced a number of rules to regulate the cement market. For example, local producers and cement wholesalers will be required to announce their selling prices and sales volumes on a weekly basis. Since only cement producers -- not traders -- are currently allowed to export cement, the minister censured traders who were exporting cement instead of selling it on the local market. Traders were taking advantage of higher export prices which pushed local cement prices up. Rachid even threatened to ban cement exports altogether or impose high fees on exports, as a way to make cement producers cover local demand on cement at reasonable prices.

Egypt's local cement production reached 36 million tonnes last year, with the local market absorbing 28 million tonnes and the remainder exported. Cement imports stopped in 2003 after heavy foreign investment in the sector raised the capacity of local cement companies.

Foreign expertise needed

THE TRANSPORT and Engineering Company (TRENCO ) was given four months to find a foreign investor interested in saving it from huge financial losses. Minister of Investment Mahmoud Mohieddin met the state-owned company's senior officials earlier this week to press upon them the need to find a reputable and expert foreign tyre maker to help TRENCO out.

The company realises daily losses of LE242,000 and has debts of LE924 million. It faces fierce competition from foreign brands, especially since customs were reduced two years ago. The French tyre maker Michelin was on the verge of acquiring the company last year, but negotiations faltered on differences about the way to pay company debts.

In a related note, Mohieddin said that 30 per cent of the debt of public enterprise companies was written off to reach LE20.5 billion.