Apache to develop Egyptian West Mediterranean Concession; executes gas sales MOU

By OGJ editors

HOUSTON, Dec. 17 -- Apache Corp. has signed a memorandum of understanding (MOU) with Egyptian General Petroleum Corp. and Egyptian Gas Holding Co. for development of the deepwater portion of its Egyptian West Mediterranean Concession. The MOU includes a field development plan and a gas sales agreement for 2.7 tcf or more of natural gas over 25 years. Production is expected to start in 2007.

Apache said that total revenue to all parties under the agreement, net of estimated development and infrastructure costs, is $6 billion.

Apache and its concession partners will supply 400 MMcfd of gas to the Egyptian market during 2007-12 and 375 MMcfd during the following 20 years. "Upon finalization of the agreements, we will have effectively contracted for all of the gas we have found to date in the deep water," said Apache CEO and Pres. G. Steven Farris.

He said Apache would begin appraisal drilling on the concession and start infrastructure construction soon after executing the final agreements. In addition, he said, "We have another five Pliocene-age gas exploratory prospects and eight Miocene-age prospects in the area."

Apache operates the deepwater portion of the concession with a 55% interest. RWE-DEA has a 35% interest, and BP Group holds 10%.

In its first deepwater foray, Apache discovered gas in the deepwater portion of the concession in May 2002 with its Abu Sir-1X well. Three consecutive discoveries and a successful appraisal well followed.

The West Mediterranean Concession is separate from Apache's Khalda Concession, with its two major discoveries, Qasr-1X and Qasr-2X, in which Apache believes it has found 1-3 tcf of gas reserves and 20-70 million bbl of condensate reserves (OGJ Online, Dec. 4, 2003).

Related Articles

Santos participates in Malaysian oil find

03/26/2015 The JX Nippon-led joint venture that includes Santos, Inpex, and Petronas has made an oil discovery with the Bestari-1 wildcat drilled offshore Sab...

Cue gains Indonesian farm-in approval for Mahato PSC

03/26/2015 Cue Energy Resources Ltd., Melbourne, received approval from Indonesia for a farm-in agreement with Bukit Energy to acquire a 12.5% interest in the...

USGS issues Appalachian basin resource study for oil, gas, coal

03/25/2015 The US Geological Survey issued a professional paper that examines large segments of the Appalachian basin’s oil, gas, and coal resources, includin...

Libra extension well confirms 200-m oil column

03/25/2015 Results from an extension well drilled by the Petroleo Brasileiro SA (Petrobras)-operated Libra consortium confirmed the presence a 200-m oil colum...

Shell completes $1.7 billion lease, trunk line sale in Nigeria

03/25/2015 Shell Petroleum Development Co. of Nigeria Ltd. (SPDC) has completed its assignment of interest in oil mining lease 29 (OML 29) and the Nembe Creek...

Chevron unit inks Myanmar PSC for Rakhine basin exploration

03/25/2015 Chevron Corp. subsidiary Unocal Myanmar Offshore Co. Ltd. has entered into a production-sharing contract with Myanmar national oil and gas company ...

Lundin spuds Alta appraisal offshore Norway

03/25/2015 Lundin Norway AS hopes to confirm the reservoir model and presence of hydrocarbons established in its Alta oil and gas discovery with an appraisal ...

Gazprom Neft to conduct seismic survey on Kurdistan’s Halabja block

03/24/2015 Gazprom Neft Middle East, operator for JSC Gazprom Neft in the Kurdistan region of Iraq, will conduct a 2D seismic survey on the southeastern secti...

TAEP: Year of 'dramatic contraction' under way in Texas oil, gas employment

03/23/2015 The Texas Petro Index (TPI) dropped seven points to 299.6 during January compared with December, reflecting low crude oil prices, a falling rig cou...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected