Royal Dutch Shell has announced its new plans for the coming fiscal year (FY) 2016/2017 in Egypt, the Anglo-Dutch oil and gas giant sets its eyes on investing $342m in drilling 33 wells in its concession areas that are operated by Badr El Din Petroleum Company (BAPETCO), according to Daily News Egypt.
The company aims to drill 19 wells for developing gas production, 10 wells for injecting water into, and 4 wells for exploring gas.
4-traders reported that during the current FY 2015/2016, Shell has drilled a total of 32 wells in its concession areas also through BAPETCO; 25 of these wells were developmental wells and the remaining 7 were exploratory wells. The company invested a total of $442m in these operations.
According to Daily News Egypt, Shell has reduced the number of its gas wells in its concession areas by three and decreased its total budget for investments by $100m from the current FY, because the Egyptian government does not repay the value of the gas.
Shell also announced that it plans to end its oil and gas operations in 10 countries in order to reduce the company’s costs and streamline operations.