First gas flows from project off Egypt - OFFSHORE ENERGY

March 10, 2023

Melisa Cavcic

Oil and gas company Energean has achieved the first gas from a well located offshore Egypt while the remaining wells are expected to come online later this year. This brings the firm closer to achieving its 200 kboed medium-term production target.

Back in January 2023, Energean outlined that its “key development projects” – Karish North, NEA/NI, Cassiopea – would enable it to deliver its 200 kboed mid-term production target. To this end, the company disclosed plans for the first gas from NEA/NI in the first half of 2023 while the firm’s expansion in Israel, including a development concept for the 67 bcm Olympus area, was expected to be communicated in 1H 2023. On the other hand, the first gas from Cassiopea in Italy was anticipated in 1H 2024.

In an update on Thursday, 9 March 2023, Energean confirmed that the first gas had been delivered at the North El Amriya and North Idku (NEA/NI) project off Egypt. According to the company, the gas is being produced from the NEA#6 well while the remaining three wells are expected to be brought online over the course of 2023.

Mathios Rigas, Chief Executive Officer of Energean, commented: “Our successful development of first gas at NEA/NI is a good example of our commitment to Egypt and longstanding partnership with the Egyptian Ministry of Petroleum, EGPC and EGAS, creating value for all stakeholders.

Energean announces NEA/NI Final Investment Decision - ENERGEAN OIL & GAS

London, 21 January 2021 – Energean pl is pleased to announce that Final Investment Decision has been taken on the North El Amriya and North Idkunea (“NEA/NI”) concession subsea tieback project in offshore Egypt. The NEA concession contains two discovered and appraised gas fields (Yazzi and Python) while the NI concession contains four discovered gas fields, one of which is readied for development. NEA/NI is due to deliver first gas in 2H 2022 with 49 million boe of 2P reserves, 87% of which is gas and peak production is expected to be approximately 90 mmscf/d plus 1 kbopd of condensates.

The NEA/NI project is a key one for the Egyptian portfolio which will provide substantial benefits to the long-term production profile in the country, whilst bringing additional cost efficiencies and strategic benefits. When Brent prices are above $40/bbl, gas will be sold at $4.6/mmBTU, which is the highest achieved to date for shallow water gas production, offshore Egypt. Total capital expenditure is expected to be approximately $235 million, the majority of which is expected to be incurred in 2022 and TechnipFMC has been awarded the EPIC contract to deliver the project. The NEA/NI drilling campaign is expected to be integrated with a broader Abu Qir drilling campaign, providing synergies on capital expenditure.

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