Record Egyptian finds but gas glut beckons - CYPRUS MAIL

March 1, 2020

Charles Ellinas

Egypt had another successful year in 2019 and this was showcased at the country’s annual petroleum show, EGYPS-2020, held mid-February in Cairo.

But 2020 is turning out to be a pivotal, but challenging, year for the oil and natural gas industries worldwide and Egypt and the East Med are not immune to it.

Opening the conference, Petroleum Minister Tarek El Molla highlighted the successes of 2019, with the oil and gas sector contributing 25 per cent to Egypt’s gross domestic product.

A total of 29 international agreements were signed during EGYPS-2020, reflecting the great potential and promising opportunities of the Egyptian petroleum sector.

Egypt: BP to Bring Raven Project Online by 2020 End - OFFSHORE ENGINEER

February 5, 2020

BP's phase three of the $12 billion West Nile Delta project offshore Egypt will come online by the end of this year, nearly 12 months behind the earlier scheduled deadline, the company said in a conference call this week.

The third phase includes the development of the Raven field, located in the offshore area encompassing five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks which BP is developing in phases.

“The Raven project in Egypt is now expected to come on stream around the end of 2020,” said BP during the quarterly results call. To remind, BP had in February 2019 said it would bring Raven online by the end of 2019.

EGAS to auction up to 11 gas exploration blocks in Egypt’s West Med by 1Q2020 - ENTERPRISE

Thursday, 30 May 2019

EGAS plans fresh WestMed gas exploration tender: The Egyptian Natural Gas Holding Company (EGAS) plans to put some 11 natural gas exploration blocks in the western Mediterranean up for auction by 1Q2020, a source from the company told Al Shorouk. EGAS has finalized studies and seismic scans, and is waiting for the Oil Ministry to make a final decision on the timeline and the number of concessions on offer.

The great gas rush of 2019: The ministry in February handed five gas exploration concessions in the Mediterranean and Nile Delta to Shell, Eni, BP, DEA and Petronas in the largest bid round in the state gas company’s history. A month later, the South Valley Egyptian Petroleum Holding Company (Ganope) launched a tender for 10 oil and gas exploration blocks off Egypt’s Red Sea coast. It remains unclear when the ministry will announce the winning companies.

Sisi authorizes Oil Minister to sign contracts with DEA Suez GMBH Group - EGYPT INDEPENDENT

May 8, 2019, 3:01 pm

Egypt’s President Abdel Fattah al-Sisi authorized Minister of Petroleum and Mineral Resources Tarek al-Mula to sign contracts with the Egyptian General Petroleum Corporation and the German DEA Suez GMBH Group according to law no.9 of 2019.

According to the expected contracts, DEA Suez will explore, develop and take advantage of oil in the Ras Badran and Gulf of Oil development areas in the Gulf of Suez.

Egypt’s Minister of Petroleum and Mineral Wealth Tarek al-Molla signed an agreement in March with DEA for oil and gas exploration in the Gulf of Suez’s Ras Badran and Ziet Bay areas with investments totaling US$20 million.

Molla said in a statement that DEA will undertake drilling activities and the operation and maintenance of the liquefied Natural Gas (LNG) extraction plant in the Gulf of Suez area.

He mentioned that the ministry has been cooperating with DEA for more than 45 years to achieve higher oil and LNG production rates in areas of the Gulf of Suez, the Delta and the Mediterranean Sea.

DEA General Manager Sameh Sabry said that the company injected US$800 million for oil and LNG exploration in the Gulf of Suez, Desouk and North Alexandria’s fields during 2017 and 2018, adding that it would possibly inject another US$700 million in the coming three years.

DEA Suez GmbH operates in the field of exploration and production of natural gas and crude oil. The Company deploys state-of-the-art drilling and production technologies. DEA Suez conducts business worldwide.

SOURCE

Winners for Egyptian oil and gas exploration round announced - ZAWYA

14 FEBRUARY, 2019Marwa Abo Almajd

Shell, ExxonMobil, BP, Petronas and IEOC among the firms to secure exploration rights in 12 concessions

The head of the Egyptian General Petroleum Corporation announced the winners of 12 new concessions at an event in Cairo on Tuesday, stating that $750 million to $800 million worth of investments would be made.

The General Petroleum Company (GPC) won a $5 million tender to explore in the West Amer sector, allowing it to drill 10 new wells, involving a total investment of $20 million.

Neptune Energy Egypt won an $11 million concession for the drilling of three wells and a financial commitment of $ 34.5 million. Merlon Petroleum won a $3.2 million tender to drill eight wells and an investment of $36 million.

Shell Egypt won three separate concessions. The first is a $27 million tender in the West Fayoum field, involving the drilling of six wells, the second is a $23 million tender to dig five wells south-east of Horus and the third is a $1 million tender to drill three wells in South Abu Sinan. Combined, the tenders involve a capital commitment to invest $57 million.

BP Begins Gas Production From Phase 2 of West Nile Delta Project - SOCIETY OF PETROLEUM ENGINEERS

13 February 2019

Gas is flowing in the second phase of the West Nile Delta development offshore Egypt, operator BP reported this week. Production, currently at around 400 MMcf/D, is expected to reach 700 MMcf/D at peak.

Developed as a long-distance deepwater tieback to an onshore plant, the second phase includes eight wells producing from the Giza and Fayoum fields. The West Nile Delta project as a whole consists of five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concessions, 65–85 km off Alexandria.

Phase 1 of the project, launched last year, consists of gas production from the Taurus and Libra fields. The first two phases target gas in the Pliocene formations. A third phase developing the Raven field, which holds gas in the deeper Miocene formations, is also expected to come on stream this year.

Combined production from all phases of the West Nile Delta project is expected to approach 1.4 Bcf/D, equivalent to about 20% of Egypt’s current gas production. All of the gas produced will be fed into the country’s national gas grid, the operator said.

DEA awarded new licence in the Onshore Nile Delta - DEA

Cairo, 12.02.2019

The Egyptian Natural Gas Holding Company (EGAS) has awarded one new licence to DEA in its 2018 Bid Round. The East Damanhour exploration block (originally offered as Block 10) is covering 1,418 square kilometres and is located west of the Disouq development leases, where DEA is the operator with a licence share of 100%.

“We are pleased with the award of this licence, which is in line with our ambition to strengthen our business in Egypt,” says Sameh Sabry, DEA’s General Manager in Egypt. “The block is located in DEA’s core region in the Onshore Nile Delta, where we successfully explore the Messinian and Pliocene plays as operator since 2004. The extensive knowledge and experience we gained over the years, the right set of skilled experts and our nearby infrastructure will offer us very good conditions to continue this exploration efficiently”, Sabry adds. 

“The proximity of DEA’s Disouq central processing plant and infrastructure provides us with an operational edge, which would enable accelerated development of any discovered volumes as well as considerable synergies and cost optimizations. In addition, the block offers significant potential in pre-Messinian structures, which is in line with our ambition to further grow in Egypt”, underlines Sameh Sabry.


DEA is planning to drill 5 to 7 exploration wells in Block 10 during the first exploration phase of 3 years.

Neptune Energy, DEA bid for Edison's oil and gas assets - sources - REUTERS

JANUARY 25, 2019 / 4:18 PM

By Shadia Nasralla, Ron Bousso and Clara Denina

LONDON, Jan 25 (Reuters) - Private-equity backed Neptune Energy and Germany’s DEA are bidding for the oil and gas assets in Egypt, Italy and elsewhere being sold by EDF’s Italian unit Edison, industry sources said on Friday.

Gas production of North Alexandria, West Delta fields to start in Dec. - EGYPT TODAY

Tue, Sep. 25, 2018

CAIRO – The second phase of gas production at North Alexandria and West Delta fields will start next December, according to Minister of Petroleum Tarek el-Molla.

Molla clarified that production will reach 400 million cubic feet of gas daily at Giza and Fayoum fields, to gradually hit 700 million cubic feet/day.

This came during Molla’s periodic meeting with the High Joint Committee of the West Nile Delta Gas Project (BP, DEA).

He further noted that production at Revine gas field will begin during the third quarter of 2019, with 450 million cubic feet per day, gradually increasing to reach its maximum capacity of 900 million cubic feet of gas per day.

The minister emphasized the importance of fully adhering to the timetables set for the implementation of the second phase to ensure starting production at these fields on schedule, adding new quantities of natural gas to raise the rates of domestic production.

Exclusive - Italy's Edison launches spin-off of oil & gas unit: sources - REUTERS

APRIL 4, 2018 / 3:17 PM
Clara Denina, Ron Bousso

LONDON (Reuters) - Italian energy group Edison (EDNn.MI), part of French utility EDF (EDF.PA), is preparing the sale of its oil and gas unit, the latest power producer to abandon fossil fuels to focus on its retail business, four industry sources said.

Edison has selected investment banks Rothschild (ROTH.PA) and Perella Weinberg to organise an auction for the exploration and production division, which could be valued at $2 billion (1.43 billion pounds) to $3 billion, one of the sources said.

The company has been looking to increase the size of its domestic electricity and gas retail business, betting on the market opening up to more competition, with retail energy customers increasingly able to chose their supplier.

Edison and EDF declined to comment. Rothschild declined to comment. Perella Weinberg did not respond to a request for comment.

Energy group DEA to invest $500 mln in Egypt oilfields - REUTERS

CAIRO, FEBRUARY 11, 2018 / 9:46 AM

Energy group DEA plans to invest nearly $500 million in developing its oilfields in Egypt over the next three years, its chief executive office said.

“We intend to pump around $500 million over the next three years in Egypt to develop the West Delta, DIsouq and the Gulf of Suez fields,” Maria Moraeus Hanssen told journalists in Cairo on Saturday evening.

The Hamburg-based company has been involved in exploration and development for oil and gas in Egypt since 1974. It is a partner of BP in the West Nile Delta gas fields.

5 projects achieve natural gas self-sufficiency for Egypt in 2018 - DAILY NEWS EGYPT

January 29, 2018

The Ministry of Petroleum aims to increase its production of natural gas by working to make five gas projects operational, on top of which comes the completion of Zohr gas field’s first phase and beginning the second phase of the Northern Alexandria West Delta deep field.

The ministry plans to complete the first phase of Zohr development project in the deep waters of the Mediterranean in June, and for production to gradually reach over 1bn cubic feet of gas per day, up by some 700m cubic feet per day now, after announcing early production from the well.

The giant Zohr field is among the most important discoveries achieved by the petroleum sector in recent years. The find was made by the Italian company Eni in August 2015, with reserves of some 40tn cubic feet of gas. It is expected to help Egypt surpass its sharp gap in energy supplies. The first phase of the project costs about $5bn.

Germany’s DEA eyes boosting investment in Egypt - EGYPT TODAY

Wed, Jan. 10, 2018

CAIRO – 10 January 2018: Germany’s DEA Group planned to pump more investments in Gulf of Suez and Disouq regions in Egypt, CEO of the group Maria Moraeus Hanssen said Wednesday.

In a meeting with Minister of Petroleum Tarek El-Molla, Hanssen stated that Egypt is now an attractive investment destination especially after latest gas production from new fields, such as Zohr giant field and North Alexandria concession.

BASF agrees oil unit merger with Fridman's DEA to spur expansion - REUTERS

DECEMBER 7, 2017 / 9:13 PM

Dmitry Zhdannikov, Ron Bousso, Ludwig Burger

FRANKFURT/LONDON (Reuters) - Chemical giant BASF agreed to merge its oil and gas unit Wintershall with DEA, a vehicle of Russian billionaire Mikhail Fridman, to create one of the largest independent oil and gas firms in Europe, the companies said.

Fridman and his partners in the LetterOne investment vehicle made billions by selling their Russian oil empire in 2013 but have since struggled to expand in the United States and Britain due to sanctions imposed on Moscow despite not being under sanctions themselves.

By folding DEA into Wintershall and creating Germany’s first oil champion, cash-rich Fridman could create new opportunities for growth in large Western markets.

West Nile Delta Phase 2 gas fields to produce 500-700 mmcf/d by 2018 - ENERGY EGYPT / ENTERPRISE / MUBASHER

November 8, 2017

The Oil Ministry is expecting the West Nile Delta (WND) gas fields – Giza and Fayoum – to produce 500-700 mmcf/d (TEKMOR Note: approx 0,2 tcf per year) when they come online by the end of 2018, the ministry said in a statement.

More West Nile Delta gas fields to begin production late 2018

The Egyptian minister of petroleum said that natural gas production from the second phase of the West Nile Delta (WND) project will begin by the end of 2018.

Tarek El Molla added that fields including Giza and Fayoum will have a production capacity ranging between 500 and 700 million cubic feet per day (mmcf/d).

Production is set to reach 1.6 billion cubic feet per day, with a 70-kilometer pipeline currently under construction.

It was previously reported that the fields are expected to cover around 25% of Egypt’s gas demand upon completion.

According to Al Ahram, gas extraction from the West Nile Delta fields is carried out in cooperation with British Petroleum (BP) and Germany’s DEA group.

Production at the second phase development of the West Delta fields to begin in 2018 - ENTERPRISE

Thursday, 24 August 2017

Production at the second phase development of the West Delta fields, which will include the Giza and Fayoum fields, is expected to begin in 2018, Oil Minister Tarek El Molla said on Wednesday. The remarks came during a meeting with Thomas Rappuhn, CEO of Germany’s DEA, which owns a 17.25% share in the project. Production had initially been slated for 2019. 

Separately, El Molla met with Malaysian company Petronas’ Vice President Adnan Zainal Abidin to discuss the company’s projects in Egypt. Petronas and Royal Dutch Shell will begin work on phase 9B of the Borollos gas field in 4Q2017, after having halted work last year over disagreements on prices with the government.

First gas from West Nile Delta contributes to DEA’s growth - DEA

Cairo, 10.05.2017

• Production from the West Nile Delta (WND) project commenced
• First gas ahead of schedule and production above plan

Production from the offshore WND gas fields commenced on 24 March 2017 from the first two fields, Taurus and Libra. Nine wells have now been commissioned and the fields are currently producing at a flow rate of more than 700 million cubic feet of gas per day.

“West Nile Delta is the largest new gas project that has been brought into production in Egypt in the last years. Its gas will contribute materially to the energy balance in the country. It is also one of the largest investment projects within DEA’s portfolio and we are pleased that the first gas milestone has been reached,” says Thomas Rappuhn, Chief Executive Officer of DEA Deutsche Erdoel AG.

“DEA was already involved in this project in its exploration phase and I would like to thank the team for the successful and professional implementation of the first part of the project,” Thomas Rappuhn adds.

“DEA is proud of being an active partner in this project. All members of the project team, within BP as the operator and DEA, have done an excellent job in order to achieve the production launch,” says Thomas Radwitz, General Manager of DEA Egypt.

Egypt- Natural gas market regulatory authority to be established before end of 2017: El Molla - MENAFN / DAILY NEWS EGYPT

14/11/2016

(MENAFN - Daily News Egypt) The Ministry of Petroleum and Mineral Resources is aiming to complete the law to establish a regulatory authority for the natural gas market, said minister Tarek El Molla. The law has been presented to the State Council and is expected to be completed before the end of 2017.

"By the end of 2017, we will have the law and the executive regulations ready, and we will have completed the establishment of the authority to allow private companies to import gas," El Molla said during an economic conference in Cairo held on Tuesday.

The ministry has provided about eight companies to be offered in the Egyptian Exchange (EGX) during the upcoming period. The assessment of these companies will be announced in November.

Nexans umbilicals to make essential subsea connection for BP and DEA in Egypt’s West Nile Delta project - NEXANS

Nexans has further extended its long run of success with BP oil & gas projects by winning a major contract to supply approximately 100 km of umbilicals for the next stage of the West Nile Delta project.

Paris, September 13, 2016 - BP Exploration (Delta) Limited, UK has ordered approximately 100 km of static umbilicals and associated accessories from Nexans for the next stage of the West Nile Delta project. This major contract will help BP, and partner DEA (Deutsche Erdoel AG), develop the Giza, Fayoum and Raven gas condensate fields and for future discovered and undiscovered resources in the BP and DEA concessions, which are between 65 km and 85 km from the coast of Alexandria, off the North Coast of the Arab Republic of Egypt.

Subsea 7 awarded contract offshore Egypt - SUBSEA 7

Luxembourg - 26 February, 2016 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) announced today the award of a major(1) contract by BP, and partner DEA (Deutsche Erdoel AG), for the development of the Giza, Fayoum and Raven subsea fields offshore Alexandria, Egypt.

This is the second phase of the West Nile Delta project, where the field development will be at depths of up to approximately 800 metres.

The contract scope includes engineering, procurement, installation and pre-commissioning of the subsea infrastructure from twelve wells, with 80 kilometres of umbilicals and 220 kilometres of pipelines. It also includes the installation of the export lines from the subsea location to the Idku terminal.

Engineering and project management work will commence immediately and will be undertaken at Subsea 7's Global Projects Centre in London. Offshore installation is scheduled to commence in two stages.