Russia’s Lukoil is to extend production rights in its Meleiha Block, located in the Western Desert concession until 2024 after receiving the ratification of the Egyptian Parliament.
The concession agreement, originally signed in 1978, granted Lukoil and its partner to conduct production activities in the Meleiha Block. The Partners in this production sharing agreement (PSA) include IEOC Production (subdivision of ENI Group) with 56% share, Lukoil Overseas (24%), and the International Finance Company (IFC), which holds a 20% share. The development project is operated by Agiba, a joint venture between the state-owned Egyptian General Petroleum Corporation (EGPC), IEOC, and IFC.
According to Lukoil, the original oil in place of the concession amounts to 90 million tons while initial recoverable reserves are 34 million tons of oil. More than 17 million tons of oil (the half of the initial recoverable reserves volume) has been produced on the block for the past 30 years of operation. There are 129 operating wells on the block.
Last year, 800,000 tons of oil were produced on the field and the partners plan to produce around 840,000 tons of oil. Meleiha is one of the most profitable and effective producing projects of Lukoil Overseas.
(Dow Jones and Energy 365)
