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| Ukraine's oil and gas company Naftogaz Chief Executive Officer Andriy Kobolyev, Paris, on October 28, 2016. Photo by AFP |
Naftogaz Ukrainy is ready to sell its assets in Egypt, chairman of the state holding Andriy Kobolev said.
According to him, the feasibility of such a step is due to the fact that this business does not bring much profit to the company.
As reported, Naftogaz through its subsidiary Zakordonnaftogaz explores and operates two oil and gas blocks in the Eastern Desert of Egypt – South Wadi El Mahareeth and Wadi El Mahareeth. The work on these deposits, the projected resources of which exceed 360 million tonnes of oil, is carried out on the basis of concession agreements signed on Feb. 7, 2012 between Zakordonnaftogaz on behalf of Naftogaz and the government of the Arab Republic of Egypt and GANOPE state oil company (Ganoub El -Wadi Holding Petroleum Company).
The duration of the concession agreements is 28 years.
Naftogaz Ukrainy in 2015 increased production of oil and condensate in Egypt by 20.7 percent compared to 2014, to 318,000 tonnes (2.33 million barrels). Commercial gas production was 192 million cubic meters, which is 4.8 times more than in 2014.
As of Jan. 1, 2015 Ryder Scott company conducted an independent assessment of the Naftogaz branch’s hydrocarbon reserves/resources in Egypt, according to which total recoverable reserves (proven and probable, 2P) amounted to 1.132 million tonnes of oil (8.2 million barrels) and 599.6 million cubic meters of gas.
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