KUFPEC Signs New Partnership with Shell in Egypt

globalbizmag.com

KUFPEC Signs New Partnership with Shell in Egypt

BG International Limited, subsidiary of Shell plc, HAS signed Farm Out Agreement (FOA) with KUFPEC Egypt Limited (KEL), a subsidiary of Kuwait Foreign Petroleum Exploration Company, (KUFPEC), under which KEL will acquire 40% stake in Block 3 (NorthEast El-Amriya) in the Egyptian Mediterranean Sea.

This FOA is subject to government and regulatory approvals, without prejudice to pre-emption rights. Shell will remain to be the operator in Block 3.

KUFPEC CEO Mohammad Salem Al-Haimer said that KUFPEC’s cooperation with its international operating partners in highly prolific exploration basins in line with the country’s 2040 strategy.

“This new partnership in Block 3 empowers KUFPEC to boost its offshore assets and exploration activities in Egypt. KUFPEC is already active in this region as it has been awarded North Ras Kanayes Offshore block in the Mediterranean Sea in 2020,” Al Haimer added.

Khaled Kacem, Shell’s Vice President & Country Chair for Egypt, said that the new partnership in the Nile Delta Block 3, will enable his company to leverage our joint expertise as we progress the opportunity. Concluding this agreement strengthens Shell’s offshore position.

“The proximity of this block to Shell’s existing assets and other exploration blocks Shell holds in the area will help accelerate the company’s offshore ambitions and support Egypt in meeting its energy supply needs,” he added.

In August 2023, Shell Egypt and partners have commenced drilling activities in the Nile Delta Blocks 3 and 4, located in the Mediterranean Sea. The exploration project entails three wells to be drilled consecutively.

New Oil Discovery

It may be recalled that KEL has made a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez in Egypt in August this year.

The discovery was made through the GNN-11 exploration well which was drilled into a fault block to the east of the GNN oil field development. The well encountered 165 feet of good quality vertical net pay in the Nubia formation, and this is the first time the Nubia has been found to be oil bearing in the GNN area of the Concession.

The producing reservoir is in the main GNN field and is located in the Nukhul formation.

The well was drilled by the recently installed GNN Early Production Facilities and has been successfully placed on production at a rate of over 2,500 barrels per day (BPD).  As a result of the new well, and the successful drilling campaign conducted to date in the field, the gross oil production from the Concession has reached 23,000 BPD, compared to 4,000 BPD before the GNN field was developed. 

GNN-11 is the fourth well to be completed by the Early Production Facilities which have been installed in the central area of the field, including a conductor support platform, a mobile offshore production unit and a 10-inch oil export pipeline, tied back to the existing Geisum Star production complex. Further, there are 3 remaining well slots on the platform, which will be used to complete the current phase of the exploration and development drilling program.

Cheiron (through its PICO GOS affiliate) holds a 60% working interest and operatorship of the Concession, with KUFPEC holding the remaining 40% interest. The field activities are run by the PetroGulf Misr Joint Operating Company.

KUFPEC is an international upstream company engaged in exploration, development and production of crude oil and natural gas outside Kuwait and is a wholly-owned subsidiary of Kuwait Petroleum Corporation.

Global Business Magazine

Global Business Magazine

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *