Khalda Petroleum, a joint venture (JV) between Apache and the Egyptian General Petroleum Corporation (EGPC), has signed an agreement with the Egyptian Electricity Transmission Company (EETC) to implement a $35 million project to connect the Razzak production area in Egypt’s Western Desert to the national electricity grid.

While its primary mandate is exploration and production, Khalda’s role extends into field development and infrastructure integration, ensuring that associated gas from its oil blocks is captured, processed, and delivered into the national transmission system.

This investment aims to improve operational reliability, reduce energy costs, and support more sustainable production operations, Khalda stated.The project includes the construction of a new 66-kilovolt (kV), 25-megawatt (MW) electrical substation, which Khalda described as a pioneering initiative among Egypt’s petroleum production companies.

The grid connection will replace diesel-powered generation at Razzak’s wells and production facilities with a more stable and reliable electricity supply.

The project is expected to save about 30 million liters of diesel, avoiding around $33 million in diesel consumption and $2.52 million in diesel-generator rental costs. It will also reduce fuel transport, storage, operating, and maintenance requirements while reducing about 80,000 tons of carbon dioxide (CO2) emissions.

Discovered in the seventies, Razzak field is considered one of the oldest oil fields in the Western Desert.