Egypt NEWS

TAG Oil Ltd. announced the successful re-entry of the vertical well, BED 1-7, at the Badr oil field in the Western Desert, Egypt. The company perforated the Abu Roash "F" formation ("ARF Formation") and conducted a Diagnostic Fracture Injectivity Test (DFIT). The reservoir was further fracture stimulated with a large 110 tons sand treatment and pump schedule with positive response confirming reservoir models and projected performance.

China's finance and investment spending in Belt and Road countries fell slightly in the first half compared to a year earlier, with no new coal projects and investments in Russia, Egypt and Sri Lanka falling to zero, new research showed. Saudi Arabia was the biggest recipient of Chinese investments over the period, with about $5.5 billion, According to the Shanghai-based Green Finance and Development Center (GFDC) in research published on Sunday.

South Africa-based subsidiary of German renewable energy company juwi has signed an agreement with Sukari Gold Mines to design, supply, build, and integrate a solar battery hybrid power plant for Egypt’s largest gold mine. The hybrid power solution will reportedly reduce diesel consumption by an estimated 22 million liters of emission per year and bring down sustaining costs and fuel price volatility.

Egypt is in the process of launching the Egypt Upstream Gateway, a digital subsurface platform that will act as an up-to-date repository of the country’s subsurface data. This unique digital initiative will be used to unlock the potential of Egypt's petroleum sector and promote the country's exploration and production potential worldwide.

Danish drilling contractor, Maersk Drilling has landed a $3.8m drilling contract for the Maersk Discoverer offshore Egypt. Maersk Discoverer is a DSS-21 self-propelled A1 column-stabilised, dynamically positioned deep-water rig. The one-well drilling contract will commence this month will see the semi-submersible rig perform operations for the next 21 days. The new contract comes as a direct continuation of the Discoverer's current contract.

The Egyptian petroleum ministry yesterday informed about inking two deals with oil supermajor, Exxon Mobil Corp for oil and gas exploration in the Mediterranean. While the first agreement requires Exxon to make a minimum investment of $220 million towards the exploration in the North East Amriya block, the second is for the North Marakia block, requiring a minimum investment of $112 million. Exxon has acquired over 1.7 million acres in Egypt.

Chevron, Royal Dutch Shell and Mubadala received concession for exploration over the Red Sea area in an international tender on Sunday. Egypt awarded the first block to Chevron, the second block to Shell and third to both Shell and Mubadala. The total exploration will cover an area of around 10,000 square kilometers which is approximately 3860 square miles. The ministry has required a minimum investment of $326 million in the project.

Oilfield services giant, Schlumberger has entered into a strategic collaboration with TGS on a new 3D seismic reimaging project. The project will see the reimaging of data from three overlapping seismic surveys across 3,600 sq km. Evidently, the seismic reimaging data is the only available 3D data in this area of the Red Sea. TGS and Schlumberger will deploy their proprietary geophysical services product line, WesternGeco on the project.

Greek oil and gas major, Energean has inked an agreement to acquire Edison E&P from Edison. The $750 million-deal will gain Energean 100% stake in Edison’s oil and natural gas unit. The acquisition will allow Energean to expand its operations in the emergent eastern Mediterranean gas hub, and establish an important presence in Egypt’s offshore basin.

Drilling services provider, ADES has landed a two-year contract for its Admarine IV offshore jack-up rig. The contract award comes from an energy company in Egypt. CEO, ADES said: “Award of a new contract with a leading Egyptian energy company reinforces the strength of ADES’ business model that focuses on providing tailored solutions and superior services in a highly competitive market.

For an undisclosed sum, BP has agreed to sell its interests in the Gulf of Suez oil concessions in Egypt to Dragon Oil based in Dubai. As per the agreement, Dragon Oil will purchase exploration and production concessions, including BP’s assets in GUPCO (Gulf of Suez Petroleum Company). BP’s CEO said in a statement, “Egypt is a core growth and investment region for BP”.

Dana Gas has awarded a deep-water drilling services contract in the Egyptian Mediterranean basin to ADES International. ADES’ subsidiary ADES S.A.E. entered the agreement, with services being provided by Vantage’s Tungsten Explorer drillship. The services will be subcontracted to the JV between ADES and Vantage Drilling, ADVantage. The contract includes one firm well and is slated for completion in 77 days.

Petroleum Ministry of Egypt has given approval to energy major BP and UAE’s Mubadala Investment Co., enabling them to buy stakes in the Nour gas field. Mubadala will buy 20% and BP will buy 25% of the Nour concession from Eni. After this, Eni will be holding only 40% of the concession. Remaining 15% will be held by Tharwa Petroleum Company of Egypt.

Italy’s oil and gas major, Eni has discovered gas in the Egyptian Western Desert. The 17,000 ft well was drilled on the Faramid South in East Obayed concession whose capacity is 25 MMscfd. After drilling, numerous gas-bearing layers in Kathabta sandstones were encountered. Eni is making efforts to increase the gas production capacity of the company from the Western Desert basin.

The Egyptian Cabinet decided last week to elevate the price of natural gas by 75% in August. The gas consumption between 30-60 cubic meters has been increased by 42.8% and consumption of more than 60 cubic meters has gone up by 33.3%. The surge in prices has raised concerns as LPG cylinders and natural gas is the main source of fuel for 75% of the Egyptian households.

Egyptian state-owned EGPC and Apache Corp. have entered into a seven-well oil drilling agreement. The drilling operations will be focused on the East Bahariya concession. The contract was signed by EGPC CEO and Apache Egypt Regional VP. Egypt has signed nearly 87 new oil and gas exploration agreements since 2014 in the country.

Italian oil firm, Eni yesterday announced the discovery of second light oil in the Egyptian Western Desert. The well has, until now, delivered 5,130 barrels of oil per day of light oil with low associated gas. Eni is now planning to drill other exploratory prospects located nearby which might lead to a new productive area for the oil major in Egypt.

Egypt’s Petroleum Minister, Tarek El Molla said today that the world’s largest oil producer, Saudi Aramco, will continue the supply of crude oil to the Egyptian refineries for another six months. Saudi-based oil supermajor would supply 500,000 to one million barrels per month. Aramco was supplying crude to the Egyptian refineries from January for an initial six months.