British BP (BP) is seeking to increase gas production in Egypt by about 160 million cubic feet per day, from two wells in the Kind Mariout and Fayoum franchise regions in deep water in the Mediterranean, in the second half of this year, according to a government official who spoke to the East.
The strengthening of gas production in Egypt would reduce the pressure on the government to import liquefied gas to bridge a gap between supply and demand that increases in the summer, in which the country suffered last year from electricity interruptions, which affected the industrial sector. The country's production of natural gas decreased to 4.35 billion cubic feet per day, while the daily needs are about 6.2 billion cubic feet.
The official, who asked not to be named, said that BP is currently completing digging the two exploratory wells in the “King Mariout 2” regions, and “Fayoum 5” with an estimated production capacity of 80 million cubic feet of gas for one well, within the Mamazar area north of Alexandria, to determine the actual production reserves, which is the process that is to be completed by next April.
The cost of drilling one well in the Mamazah area in the north of Alexandria in the Mediterranean is estimated at deep water at about 150 million dollars, according to the official.
The Egyptian government intends to import between 155 and 160 liquefied gas shipments this year to fill the gap between the actual need of the local market and local production.
Egypt presented to foreign companies at the end of last year new incentives to increase natural gas production, which is to allow the export of a specific share of new production, so that their revenues are used to pay the required dues, in addition to raising the price of these companies' share of the production of new gas in any of their fields.
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