RWE Dea AG announced that a long term gas sales agreementhas been concluded with the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) for delivering gas to the Egyptian market from its North Idku offshore concession located in the Nile Delta, Egypt.
After the recent acquisition of a 30% interest from Perenco Eastern Mediterranean Limited in the block, RWE Dea now holds 100% in North Idku. Following a successful exploration campaign, resulting in four discoveries out of five exploration wells, RWE Dea has declared commercial gas and condensate reserves in the block.
With the signature of the gas sales agreement, the company has immediately started the first phase of the development of the offshore gas fields discovered. The development and subsequent production will be conducted by the Suez Oil Company (SUCO), a joint venture between RWE Dea and EGPC. First production is planned to begin in 2010. Development will be concentrated in the offshore area closer to shore. The gas produced will be piped to and processed by existing onshore processing facilities in the nearby Abu Qir Bay.