Minister of Petroleum and Mineral Resources Tarek El Molla chaired the general assemblies of Petroshrouk and Belayim Petroleum Company (PETROBEL) to approve their revised budget plans for the fiscal year (FY) 2021/22 and the proposed budget for 2022/23.

During his review of the business developments in Petroshrouk Company, Khaled Mowafi, the company’s chairman, said that the status of the two wells, Zohr 15 and Zohr 16, in the southern region of the Zohr field, will be on production during the next few months. He noted that the year witnessed challenges in maintaining production rates from the field in the range of about 2.7 billion cubic feet of gas per day (bcf/d).

The investments in the amended budget amounted to around $698 million to implement the exploratory and development activities, drilling operations, and implementation of station development projects and operations, Mowafi noted. He added that the targeted investments in 2022/23 reached about $690 million to complete the work of exploration, discovery, and development activities and the optimization of marine facilities, such as the project to improve operating efficiency and water treatment.

Moreover, Petroshrouk has showcased a rich record of corporate social responsibility (CSR) work through the implementation of several development projects for the community surrounding the Zohr field in order to achieve sustainable development goals. The company allocated a total value of EGP 125 million to development projects in the fields of health and education.

Meanwhile,  Petrobel’s Chairman, Khaled Mowafi,  reviewed the amended budget items for the current fiscal year. He points out that the investments amounted to $842 million to intensify research, exploration and development operations after re-evaluating the already producing areas, as it is planned to drill the exploration well, Al Qar’a South-1, and drill 4 additional wells in the areas of Belayim and Baltim, southwest, in order to maintain and increase production rates.

Mowafi also discussed projects to measure flare gases and raise the efficiency of the water treatment plants associated with the fields, adding that the company has drilled eight onshore and offshore wells in the Abu Rudeis area.

Regarding the 2022/23 budget, Mowafi indicated that the investments amount to $807 million, with a focus on exploration operations to find additional reserves and complete the company’s plan to maintain assets and reduce operating costs. He asserted that this should occur while increasing production, as it is targeted to reach production rates of about 248,000 barrels of oil equivalent per day (boe/d) by drilling 15 development wells.

El Molla praised the performance of the two companies in terms of commitment to standards of occupational safety, health and environmental preservation, and their presentation of a distinguished model for the speedy completion and efficiency of operations performance in the development projects of onshore treatment plants and associated water treatment.

The oil and gas sector companies succeeded in maintaining production rates during the last period, despite the challenges that faced the global petroleum industry. This was accomplished by intensifying exploration and discovery activities and drilling wells with the aim of continuing to provide the needs of the local market and the country’s economic sectors, El Molla stated. The current high levels of prices in the global oil and gas markets encourage international companies to inject more investments in the field of exploration, discovery, development and production, he noted.