Petroleum Min. announces putting Silva gas well on production - EGYPT TODAY

Fri, Nov. 8, 2019

CAIRO – 8 November 2019: Ministry of Petroleum announced Thursday putting Silva natural gas well in phase 9B of the deep western delta concession area in the Mediterranean on production, at 60-80 million cubic feet per day in early November.

The ministry said in a statement that the Silva well is the third to be put on production within a month after the wells, Saphir East and East Swan, which were put on production last October with a production rate of up to 170 million cubic feet of gas per day.

It added that Burullus Gas Company, which is operating in the project on behalf of the Petroleum Authority, and Shell International completed linking the new well to production, bringing the total production of the three wells to about 240 million cubic feet per day of natural gas.

Shell starts Production in (9b) October 2018 - EAST MEDITERRANEAN GAS NEWS

Cairo August 3 2018
Suzan Nour

Rashid Petroleum Company (Rashpetco) to start production from the first two wells in phase two (9b) in the West Delta region deep waters of the Mediterranean Sea during the first half of October.

Adding eight production wells and two exploration wells will be completed in the third quarter of 2019 to reach overall production rates about 400 million cubic feet of gas and 3,000 barrels of condensate per day.

SUBSEA 7 awarded contract offshore Egypt - SUBSEA 7

13 Jun 2018

Subsea 7 announced today the award of a sizeable(1) engineering, procurement, installation and commissioning contract by Burullus Gas Company for the West Delta Deep Marine Phase 9b development project, offshore Egypt.

The scope includes connecting six new wells into existing subsea facilities using umbilicals and flexible flowlines. Project management and engineering work has already commenced at Subsea 7’s office in Cairo, Egypt and Paris, France. Fabrication of the subsea structures and spools will be carried out at Petrojet’s yard near Alexandria, Egypt.

Offshore work is scheduled to commence in the second half of 2019.

Subsea 7's Regional Vice President for Africa, Gilles Lafaye, said: “This award recognises our track record of good execution and our established local presence in Egypt. We look forward to continuing our successful and collaborative relationship with Burullus.”

Shell in talks with Oil Ministry to increase its share of gas produced at Phase 9B - ENTERPRISE

Tuesday, 19 December 2017

Shell has apparently entered talks with the Oil Ministry to increase its share of gas produced to offset their investment costs from Phase 9B of the West Delta Deep Marine Concession, government sources tell Al Borsa. 

The company is looking to recoup the investment costs of developing the concession sooner, they added. 

The company plans to complete developing two test wells in Phase 9B in 1Q2018. BG Egypt, before being acquired by Shell, had suspended work on Phase 9A+ and 9B in March 2016 after the government rejected paying USD 7.00 per mmBtu for Phase 9B.

Shell plans to drill 63 wells in Egypt in 2018 - EGYPT TODAY

Thu, Oct. 12, 2017

CAIRO – 12 October 2017: Royal Dutch Shell planned to drill 63 wells in Egypt in 2018 at different geological structures in the Western Desert, Shell’s director Andrew Brown announced Thursday.

“This targets increasing oil and gas production volume in the Western Desert,” Brown added.

In a Thursday meeting with Prime Minister Sherif Ismail and Minister of Petroleum Tarek El-Molla, Brown explained that Shell’s projects in the next period include Phase 9b in the West Delta Deep Marine Concession with $1.6 billion in total investments.

Brown has also presented plans and recommendations of his company to increase investments in the oil and gas exploration and production.

In June, Shell said it plans to increase investments in oil and gas explorations in Egypt.

Production from Shell’s Burullus gas fields rises to 526 mmcf/d in past year - ENERGY EGYPT

September 5, 2017

Production from Shell’s Burullus concession increased to 526 mmcf/d and over 6,000 bbl of condensates last year, Chairman of Shell JVs Rashpetco and Burullus Hisham Al Attar said, according to a statement from the Oil Ministry. Al Attar says that design and manufacturing works have been contracted on the West Delta Deep Marine Phase 9b project, but a contractor is yet to be picked. Rashpetco is set to drill two new exploration wells in 1Q2018, he adds, without specifying their location.

Chairman of Rashid Petroleum Company (Rashpetco) Hisham Al-Attar said that Burullus fields’ natural gas output rose to 526 million square feet per day and more than 6,000 barrels of condensates.

Shell, Petronas to begin work on Borollos gas field 9B in 4Q2017 after delays - ENTERPRISE / AL SHOROUK

Wednesday, 19 July 2017

Royal Dutch Shell and Malaysia’s Petronas will begin work on phase 9B of the Borollos gas field in 4Q2017, after having suspended work last year over pricing disagreements with the government, Oil Minister Tarek El Molla said, according to Al Shorouk. 

The two sides eventually reached an agreement, but work on the field later stalled again as the state fell behind on payments to Shell and BG. 

The USD 950 mn project will produce between 350 and 400 mcf/d once operational.

AllSource Analysis: Shell’s Idku LNG Ramps Up Exports - ENERGY EGYPT

July 15, 2017

The liquefaction terminals at Idku represent the only currently operating facilities in Egypt for the export of LNG. Since fall 2016, Egypt’s Petroleum Ministry and Shell, the operator of the facility, have agreed to increase the number of LNG cargo ships (hereafter “cargoes”) leaving Idku, which has been at extremely low levels for the past three years. Setting a target of 22 shipments for 2017, it is hoped that the facility can export enough to balance expenses and revenues. Imagery analysis confirms 4 cargoes leaving the port so far in 2017, illustrating tentative progress towards the goal, as well as beginning to pay down outstanding debts to Shell. The target of 22 shipments in 2017 will likely be revised upwards in 2018 and 2019 as the terminal approaches maximum output by 2020 to coincide with the massive Zohr field coming online and changing the Egyptian gas landscape entirely.

Natural gas surplus by 2020: El Molla - DAILY NEWS EGYPT

2 May 2017
Mohamed Adel

Sector will sign five new deals with investments of $154m

The petroleum sector has achieved numerous developments during the current period in natural gas production. Egypt’s total production of gas reached 5 billion cubic feet per day, following a number of new discoveries. Minister of Petroleum and Mineral Wealth Tarek El Molla explains the developments in an interview with Daily News Egypt.

Is the ministry set to sign new petroleum agreements in the coming period?
The Ministry of Petroleum plans to sign five new oil agreements between foreign partners and the Egyptian General Petroleum Corporation (EGPC) to search for oil and gas in Egypt’s Western Desert, with minimum investments of $154m and signing grants worth $63.2m to drill 30 wells.

Prime Minister, Minister of Petroleum meet with Shell Upstream International Director - ENERGY EGYPT / EGYPT'S MINISTRY OF PETROLEUM

 

April 9, 2017

Egyptian Prime Minister, Eng. Sherif Ismail, met with Andrew Brown, Upstream International Director at Shell in the presence of Minister of Petroleum and Mineral Resources, Tarek El Molla, and Eng. Gasser Hanter, Country Chairman of Royal Dutch Shell Egypt, to discuss existing and potential opportunities in Egypt’s oil and gas exploration.

The meeting included a report about the company’s work in Egypt and the existing opportunities in gas exploration. Prime Minister confirmed that the Egyptian oil and gas sector is a promising industry with a great future. Additionally, the government is keen to increase the profit of natural minerals and to better manage these resources. The government is also promoting mineral developments to attract further investments.

Shell, Petronas begin working on Borollos gas field 9B - ENTERPRISE / AL SHOROUK

Tuesday, 21 February 2017

Shell and Malaysia’s Petronas have begun working on phase 9B of the Borollos gas field, an unnamed EGAS official tells Al Shorouk. The USD 950 mn project involves drilling eight new wells with a daily capacity of 387 mcf. BG, since acquired by Shell, had suspended work on phase 9A+ and 9B of the gas field last March after the government rejected paying USD 7 per mmBtu for phase 9B, and eventually reached an agreement with the government to maintain a price cap of USD 5.88 per mmBtu for gas from the phase.

Work on the gas field later stalled as the state fell behind on payments to Shell and BG, but Shell ultimately ramped-up exploration and drilling activity on the back of promising data. As we reported last week, the government is reportedly gearing up to repay USD 500 mn-1 bn to IOCs including Shell.

Eni, BP pouring more investment into Egypt than anywhere else - WORLD OIL

2/15/2017
Salma El Wardany, Sam Wilkin, Tamim Elyan

CAIRO (Bloomberg) -- Eni SpA will start producing from the giant Zohr natural gas field off Egypt’s Mediterranean coast by the end of 2017 and plans to invest $10 billion in the North African country over the next five years, CEO Claudio Descalzi said. Production plans for Zohr are on schedule, and Egypt will be Eni’s top country for investment in the next two years, Descalzi said at a conference in Cairo. 

BP Plc, which bought a 10% stake in Zohr from Eni last year, invested more in Egypt in 2016 than in any other country and will do so again this year, the company’s CEO Bob Dudley said at the same event.

Molla in talks with Petronas over Borollos gas field phase 9B - ENTERPRISE / AL BORSA

Sunday, 5 February 2017

Petroleum Minister Tarek El Molla discussed the USD 950 mn plan to develop phase 9B of the Borollos gas field with the head of Malaysia’s Petronas on Saturday, Al Borsa reported. The project involves drilling eight new wells with a daily capacity of 387 mcf.

Egyptian LNG (ELNG) is a joint venture between PETRONAS and partners Egyptian General Petroleum Corporation, Egyptian Natural Gas Holding Company, BG Group, and Gaz de France.


The ELNG project comprises the development and operation of an LNG liquefaction plant and related infrastructure at Idku, approximately 50 kilometres east of Alexandria in Egypt. Currently, two trains are up and running, each at a capacity of 3.6 million tonnes per annum. PETRONAS’ capabilities in the project management and development of a fully-integrated LNG operation was again proven as ELNG set a record of being the world’s fastest developed LNG project – six years from the first exploration well to the lifting of the first cargo in 2005. The ELNG plant receives its feedstock from PETRONAS’ upstream operations in the offshore West Delta Deep Marine concession, in which it is a 50:50 equity partner.

Shell cuts Borollos, Rasheed investments to $158.9m in operating expenses - DAILY NEWS EGYPT

Daily decline rate 10m feet of gas at the company’s concession and there’s no production increase
Saturday October 8, 2016, Mohamed Adel 

Royal Dutch Shell reduced its investments for the current fiscal year (FY) in Borollos and Rasheed concessions to only $158.9m for maintenance and operating expenses.

A source within the petroleum sector told Daily News Egypt that the company allocated operating expenses valued at $96.7m to Borollos fields and $38m for periodical maintenance to the wells.

The source added that Shell allocated $22.7m for the operating expenses of Rosita field in Rasheed’s concession, and $1.4m for maintenance operations. There has been no increases in the performance of the natural gas production rates.

The source noted that Borollos and Rasheed fields’ production declines on a daily basis by 10m feet of gas.

Egypt eyes Idku LNG restart following Shell deal - INTERFAX

By Rachel Williamson, 6 October 2016

Egypt is slowly moving closer to restarting LNG exports following a deal with Shell to raise the volume of gas sent to the Idku LNG plant.

Shell cut a deal with the Egyptian government in mid-September to send 3.54 million cubic metres per day to Idku from the company’s gas fields to compensate for some of the rising debt Cairo owes to it in receivables, according to a leak from the Ministry of Petroleum reported in the Egyptian media.

Shell would not confirm or deny reports that gas volumes to the terminal have already been increased, but people working for the country’s energy authorities say the negotiations suggest that Idku will begin operating more regularly soon.

Shell's talks with Cairo hit choppy waters - NATURAL GAS EUROPE

March 24th, 2016

Royal Dutch Shell and the Egyptian government have been at pains to downplay reports this week that talks on developing the West Delta Deep Marine (WDDM) concession 9B have reached an impasse. This comes as Italy's Eni is gearing up to develop an even bigger offshore gas field, Zohr.

Daily News Egypt reported that BG, now part of Shell, had demanded a price of $7/mn Btu from the government for gas to be produced at 9B, whereas the latter had agreed to pay $5.88. Its March 22 report cited a source close to the talks who said that Shell would only resume negotiations if the government gave into its price demand or else immediately paid $1bn back dues owed to BG. If Cairo agreed, the $7 could be negotiated downward once back dues were paid, the source added.

Egypt: Oil ministry rebuffs reports on BG spat - OFFSHORE ENERGY TODAY

23 March 2016

BG Egypt, a subsidiary of BG Group, a UK company recently taken over by Shell, has reportedly stopped work on some Mediterranean Sea projects, offshore Egypt.

According to a Reuters report on Tuesday, which cited an official at the Egyptian General Petroleum Corp (EGPC), the company couldn’t reach a deal with the Egyptian government on the price of gas. He reportedly said that BG Egypt had abandoned “work at 9A+ and 9B” project and removed the drilling rigs earlier this month.

Offshore Energy Today has reached out to Shell, given that the Anglo/Dutch oil giant now owns assets previously controlled by BG Group.

BG Egypt halts some development wells over price dispute -source

Tue Mar 22, 2016, By Ehab Farouk

BG Egypt has suspended work at some Egyptian development projects after it failed to agree with the government on the price of gas, an Egyptian General Petroleum Corp (EGPC) official told Reuters on Tuesday.

"BG has stopped work at 9A+ and 9B after failure to reach an agreement on the fixed price to be paid for extracted gas, and it withdrew rigs working on the 9A+ wells on the seventh of March," the EGPC official said.

Egypt's Ministry of Petroleum denied BG Egypt had stopped development as a result of price disagreements and said in a statement that "negotiations over timelines for the projects" are ongoing.

The development areas include several deepwater wells in the West Nile Delta.

Egypt’s overdue debts prompt BG to further postpone linking gas fields to mid-2016 | Daily News Egypt

Project will only offset the natural decline of fields production, says official

The British Gas Company (BG) has once again postponed linking stage 9B to the Burullus fields to mid-2016 rather than the beginning of 2016, due to delayed repayment of Egyptian debts.

A senior official at the Ministry of Petroleum told Daily News Egypt that BG postponed the project for the second time, when it was agreed in 2013 that the linking will be completed by the beginning of 2015. The first postponement resulted in pushing the deadline for linking 9A to mid-2015.

The official said the total production of stage 9B will be a maximum of 500m cubic feet of gas per day.

The official said stage 9B is the largest project to begin production in 2016, but will not increase Egypt’s total production, as it would offset part of the natural decline of field productivity.

Egypt has recently agreed with BG to raise the price of natural gas produced to stage 9B from $3.95 per million British Thermal Units (BTUs) to $5.88.

The Ministry of Petroleum had earlier promised foreign companies to pay $500m of its total overdue debt, currently at $2.7bn, by the end of 2015. The agreement has yet to be met.

BG’s total production declined to about 850m cubic feet per day during the first quarter of the current fiscal year after linking stage 9A, compared to 1.1bn cubic feet at the beginning of 2014.

Foreign partners in the oil sector have delayed the linking of their gas fields in response to the government’s failure to pay overdue amounts. This is expected to lead gas production to decline until the end of 2016.

The official said total Egyptian gas production is estimated at 4.106bn cubic feet per day, although it is declining by 100m feet every month.

SOURCE