El Molla Initials Contracts with Winners of Red Sea Bid Round

El Molla Initials Contracts with Winners of Red Sea Bid Round
MEDITERRANEAN SEA, ISRAEL – MARCH 28: In this handout image provided by Albatross, The Tamar drilling natural gas production platform is seen some 25 kilometers West of the Ashkelon shore on March 28, 2013 in Israel. The offshore Tamar drilling site which was originally dispatched from a shipyard in Texas at the end of last year is due to start producing natural gas next week. Over the past few years Israel has suffered from a shortage in natural gas, but with the new platform that weighs 34,000 tons and will be mainly operated by Israelis, the US company Nobel Energy which owns a 36% stake in Tamar, hopes to change Israel’s energy situation as well as the economy as a whole. (Photo Photo by Albatross via Getty Images)

Minister of Petroleum and Mineral Resources Tarek El Molla announce the initial signing with the winning companies of the Red Sea bid round. Currently, legislative measures are being taken to submit a proposal to the Cabinet. El Molla added that the bid round’s results will push forward the ministry’s plans to attract foreign investments into the petroleum sector especially in unexplored areas, according to a press release.

The minister affirmed the continuation of exploration and production (E&P) activities in concessions located in Upper Egypt despite the coronavirus (COVID-19) outbreak, stressing that his ministry remains involved in the development of Upper Egypt by implementing E&P investments in addition to delivering natural gas to households.

Furthermore, the Chairman of Ganoub El Wadi Petroleum Holding Company (Ganope), Mohamed Abdel Azim detailed the company’s E&P activities in Upper Egypt in a report he introduced to El Molla.  According to the report, the company has signed 13 E&P agreements in total, five developmental agreements, and one exploration and development agreement. Ganope is also assisting in the production phase of 10 petroleum agreements with the Egyptian General Petroleum Corporation (EGPC). Abdel Azim added that the joint projects for geophysical data collection remain in progress until the completion of the 3D seismic survey in the Red Sea region.

According to the press release, Ganope increased its production rates from its concession areas during the current fiscal year (FY) and until the end of March. Its total production exceeded seven million barrels (mmbbl) and recorded daily production rates amounting to 23,000 bbl/d. The total production of butane for the same period reached 3,244 tons in addition to 1.8 billion cubic feet of natural gas (bcf). Abdel Azim added that during that time frame they have drilled two exploratory wells, four developmental wells, repaired 43 wells, and re-completed eight wells.

The company has continued to add new oil reserves especially with Petrogulf’s recent discovery which has revitalized the Gesum marine region and added large reserves of crude oil. He noted that assessment well GNN-4 is now being completed with an initial production rate of 2,100 bbl/d, while wells GNN-5 and GNN-6 are underway. Additionally, PetroMala has recently made an oil discovery in Abu Marwa region in Hurghada.

It should be noted that natural gas was delivered to more than 13,7025 housing units in Upper Egypt during the period from July 2019 to April 2020.


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