Uchenna Izundu
International Editor

LONDON, Mar. 26 -- RWE Dea AG plans to begin first deliveries of gas from the North Idku offshore concession in Egypt's Nile Delta by 2010.

The companies have signed a gas sales agreement under which RWE Dea will deliver gas to Egyptian General Petroleum Corp. (EGPC) and Egyptian Natural Gas Holding Co. for the domestic market. RWE Dea has made four discoveries out of five exploration wells on the block in which it holds a 100% stake.

RWE Dea said Suez Oil Co., a joint venture of RWE Dea and EGPC, would develop and produce the gas, which will be piped to existing onshore processing facilities in nearby Abu Qir Bay.

Development of the block will move RWE Dea from an oil producer in the Gulf of Suez to a natural gas producer both as operator and as partner with other players. It has been producing oil for nearly 30 years. The North Idku project is the first step toward developing the gas reserves RWE Dea has discovered in the Nile Delta area off Egypt.

Contact Uchenna Izundu at uchennai@pennwell.com.