Despite significantly higher results in 2021, SDX intends to reduce its production and investments due to technical difficulties.
The British company SDX Energy provided, on February 1, an operational update of its oil and gas activities in Egypt and Morocco for the year 2021. It also indicated its projections for 2022 concerning these two countries, in terms of investment and production.
In Egypt, “our full-year 2022 production forecast is lower than actual production of 5,886 barrels of oil equivalent per day in 2021, primarily due to the planned divestment proposal for South Disouq and the natural depletion of wells,” said Mark Reid, CEO of SDX.
On the Moroccan side, SDX intends to reduce its investments in 2022 by around 6 million dollars compared to 2021. A situation which, according to the manager, is explained by the choice to suspend, for 5 years, a customer contract. This, while waiting to have greater precision on the future supply of gas and on the prices making it possible to support a new contract over the duration.
Overall, the company reports that its capital expenditure will fall this year across its operations. They will be around $21.5 to $23 million for below-average production, i.e. 5,900 barrels of oil equivalent per day, in 2021.