MINISTRY of PETROLEUMand MINERAL RESOURCES

SECTOR STRUCTURE REFORM

MAIN OBJECTIVES

SOURCE: Client interviews, Team analysis

The objective of the program is to create a well-governed sector to help increase national wealth andachieve sustainable development.

This is achieved by separating policy making,regulatory and operational roles across the sector &create value chain focus within State-OwnedEnterprises (SOEs) with empowered entities,streamlined processes, a focused entity portfolio andbest practice entity governance.

External Support

Working Teams

Program sponsor Eng. Mohamed TaherFirst Undersecretary at MOP

Eng. Alaa Eldin HegazyDeputy CEO at EGPC

Program Leader

TEAM STRUCTURE

SOURCE: Client interviews, Team analysis

CURRENTLY CHALLENGES FACES PETROLEUM SECTOR

Roles and responsibilities in the sector governance are not well defined, leading to overlapping and confusion of activities.

Lack of clear sector structure leads to inefficiency and uneconomic activities

A sizable portion of upstream JVs are subscale operators with high overhead costs and adding management burdens to the sector.

Change Picture

PROGRAM REVOLVES AROUND THREE MAIN ELEMENTS

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A

B

SOURCE: Client interviews, Team analysis

Change Font & Shape

A- DEMARCATION OF ROLES

Emphasisof sector roles with clear demarcation anddefinition of the main functions

Establish an independent and impartial regulatory body

Allowfor a more seamless and efficient management forthe oil and gas sector

B- CREATE SECTOR FOCUS ALONG THE VALUE CHAIN

Change the governance structure to allow for more focus and empowerment for entities along the value chain

Reposition EGPC and the holding companies and define their clear roles and mandate

Allow for consolidation of activities along the value chain, with a focus on performance enhancement.

C -Rationalize sub-scale operators and non-core businesses

Streamline subscale operators to improve focus and avoid conflicts

Simplify the portfolio making it more focused on core functions

Allowfor cost reduction, streamlined processes and resource optimization

Cap Lock

DESIRED OUTCOMES

SOURCE: Client interviews, Team analysis

Enhance sector work flow to create an attractiveinvestment environment.

Sustainable development of petroleum resourcesfor the benefit of future generations.

Enablement within the sector to carry out the roleassigned.

Assign accountability of decision-making &performance measures.

Enhance transparency and accuracy of information.

Increase the sector revenues through rationalizingsub-scale operators & non-core businesses.

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2

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4

5

Identify new Sector Structure

Improve EGPC and Holding Companies governance.

Establishment of independent Gas Regulator

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