Exploration and Production Activities in Egypt
In 1999, RWE Dea took over assets from Deminex in Egypt, which have been operating since 1974.
In recent years the company made a number of major gas discoveries in Egypt and boosted its activities considerably with the acquisition of additional concessions. RWE Dea has a total of 12 onshore and offshore concessions in Egypt, across a concession area of about 20,000 square kilometers.
The core regions of RWE Deas exploration activities are
- Gulf of Suez
- Nile Delta / West Nile Delta
Western Desert
Gulf of Suez
RWE Dea’s early exploration activities in Egypt resulted in the discovery of three oil fields in the Gulf of Suez: Ras Budran, Ras Fanar and Zeit Bay, which shortly thereafter were put on production. Their combined cumulative production has reached more than 600 million barrels over the years. All three fields are operated by Suez Oil Company (SUCO), a joint venture between RWE Dea (operator) and the Egyptian General Petroleum Corporation (EGPC).
Nile Delta and West Nile Delta
The current exploration activities of RWE Dea in Egypt are concentrated on the onshore and offshore Nile Delta, where RWE Dea is operator in three concessions (North Idku, North El Amriya and Disouq ) and major partner in two others in the Western Nile Delta (West Mediterranean Deep Water and North Alexandria).
Nile Delta
In its wholly operated concessions Disouq (onshore) and North El Amriya (offshore), RWE Dea is engaged in a comprehensive exploration programme comprising the drilling of shallow and deep target as well as the acquisition of several extensive 3D seismic campaigns which also included, for the first time, the acquisition of a highly challenging seismic survey covering the transition zone from beach to near-shore shallow waters. To target the deeper potential in the Nile Delta, RWE Dea is applying new proprietary 3D-processing techniques to better image hydrocarbon bearing strata in a deltaic environment.
Recent exploration efforts for natural gas in the onshore Western Nile Delta have been successful, particularly in Disouq concession, where RWE Dea has made seven gas discoveries and is currently working in the process of developing its first onshore gas field. In addition, RWE Dea has made two gas discoveries in the offshore part of the Nile Delta in North El Amriya concession, which shall be developed with nearby North Idku discoveries.
West Nile Delta
RWE Dea will be investing 3.6 billion US-Dollars in the field development in the North Alexandria and West Mediterranean Deep Water concessions – the biggest single investment for the upstream company to date.
With reserves of more than 50 billion cubic meters of natural gas (RWE Dea share), the West Nile Delta development of the combined concessions of North Alexandria and West Mediterranean Deep Water is considered the largest in RWE Dea’s portfolio.
Start of production from these concessions is expected by 2015. Amongst other field development projects of RWE Dea, such as Breagh in the United Kingdom and Gjøa in Norway, West Nile Delta Development will make a substantial contribution to the company’s growth target, which is to double production over the next five years. As a partner in the field development, RWE Dea will actively support the project through its experts and the company’s own know-how.
The North Alexandria and West Mediterranean Deep Water concessions are located in the offshore region of the West Nile Delta, some 40 kilometers off the coast of Egypt. The concession includes the Raven natural gas fields in the high-temperature and high-pressure depth domain which extends into the West Mediterranean Deep Water concession. The first phase of development will combine development of Raven and the four other fields of Giza, Fayoum, Taurus and Libra. This calls for a high level of investment and the deployment of leading-edge technologies in developing these fields under highest safety and environmental standards. Most of the total investment for the field development in the order of 9 billion US-Dollars will be spent in the North Alexandria concession. BP (the operator with a 60% stake) and RWE Dea (40% stake) will split the total investment accordingly. For RWE Dea, its share will represent the company’s biggest single investment, which will be spent over the lifetime of the project.
During the plateau phase starting 2015, more than 3 billion cubic meters of gas (RWE Dea share) will be produced annually. Planning provides for a production period of about 20 years in the first phase. Development of further natural gas potential including already discovered gas significant volumes within the concession areas will take place in a second phase.
Western Desert
Furthermore, RWE Dea holds shares as non-operator in various concessions located in the onshore Western Desert of Egypt. These blocks cover an area of approximately4100km² for exploration and development acreage, surrounded by numerous oil and gas fields.
