To compensate for the natural decrease in its oil and gas production, Egypt is focusing its strategy on the upstream segment. The country aims to become a hub for the production and export of energy to the countries of the sub-region and the European market.
As part of a program to explore for oil and gas in the Western Desert in Egypt, local companies Khalda Petroleum and Qarun Petroleum have announced that they will invest $ 830 million and $ 252 million respectively over the course of the fiscal year 2021-2022. This begins in July 2021.
Khalda Petroleum’s activities during the period involve the drilling of 87 wells, of which 35 are for exploration and 52 for development or production. This is expected to achieve an average daily production of approximately 130,000 barrels of crude oil and condensate and 630 million cubic feet of natural gas.
As for the work envisaged by Qarun Petroleum, these should include the drilling of 24 development wells and 5 exploration wells to achieve an annual production capacity of approximately 9 million barrels of crude oil. It should be noted that these operations will continue at the same time as the implementation of a rehabilitation and maintenance plan for the said wells.
Moreover, in recent years, the exploitation of oil and gas resources from the Western Desert has been neglected by players in the oil sector due, among other things, to exorbitant financial costs.
“Many factors have hampered oil and gas exploration in the Western Desert region, including the fact that the region is full of mines left after WWI and WWII. This made the exploration process difficult and expensive. Some areas must be cleared before drilling can be carried out, ”commented Abdel Khaleq Faruq, director of the Nile Center for Economic and Strategic Studies.
Recall that more than 100 international companies operate in the oil and gas sector in Egypt and that between 2014 and 2020, 84 oil agreements worth approximately $ 14.8 billion were signed by the government.
Khalda Petroleum and Qarun Petroleum are part of a joint venture between the state-owned Egyptian General Petroleum Corporation (EGPC) and the US Apache Corporation.