Egyptian General Petroleum Corp. (EGPC) and Egyptian Natural Gas Holding Co. (Egas) have awarded licenses in their 2013 bid rounds for blocks in the Western Desert of Egypt and Mediterranean Sea.
EGPC awarded Eni SPA 100% participating interest and operatorship of 2,058-sq-km onshore block South-West Melehia in the Western Desert, near the Melehia development lease in which the company has a participating interest.
Egas named Eni operator of Blocks 8 and 9 in the deepwater Mediterranean Sea near the Cypriot waters boundary.
Interest in Karawan Offshore Block 8 will be split 50-50 between Eni and BP PLC. The license covers 4,565 sq km in 2,000-2,500 m of water. Eni will hold 100% interest in North Leil offshore Block 9, which covers 5,105 sq km in 2,100-2,800 m of water.
Eni, whose presence in Egypt dates back to 1954, is currently the largest international energy firm in the country, with hydrocarbon equity production totaling 220,000 boe/d.
Eni this summer entered South Africa and Myanmar (OGJ Online, June 10, 2014; July 31, 2014); and acquired new areas in China and Vietnam (OGJ Online, June 20, 2014; June 30, 2014).
Egas also awarded a 50-50 joint venture between Petroceltic International PLC and Edison International SPA North Port Fouad Block 7 offshore the Nile Delta, residing to the north of—and immediately adjacent to—the North Thekah block awarded to a Petroceltic-Edison JV in 2013. The combined area of both licenses is more than 7,000 sq km.
No wells have been drilled on the North Port Fouad block to date but regional and seismic evidence indicates that the proven Nile Delta Oligocene and Levantine basin Miocene plays are likely to be present. Petroceltic notes that major hydrocarbon discoveries have been reported in both plays in recent years.
North Port Fouad has an initial 3-year term and is extendable up to a maximum duration of 8 years. The firm work program commitment in the initial 3-year term comprises the acquisition of 1,000 sq km of 3D seismic data. There is no well obligation in the first license period.
All new licenses are expected to be formally awarded in early 2015 after the ratification and finalization of the concession agreements.
The EGPC bid round comprised a total of 31,107 sq km in 5 offshore blocks and 10 onshore blocks in the Gulf of Suez and Western Desert. Egas offered two onshore blocks and five offshore blocks.
