Doris Leblond
OGJ Correspondent
PARIS, Nov. 5 -- Gaz de France has acquired from Vegas Oil & Gas a 45% stake in the Alam El Shawish West license in Egypt's Abu Gharadig basin. Vegas Oil & Gas remains operator of the 1,075 sq. km license, which is in the Western desert about 250 km southwest of Alexandria.
Several major discoveries have been made there, and an exploration program remains under way. Oil production is scheduled to begin in early 2008, to be followed by gas production in 2011.
If the transaction is approved by the Egyptian authorities, under the production-sharing agreement, Gaz de France is banking on increasing its portfolio of reserves by at least 30 million boe, according to preliminary estimates, but the volumes could be higher as further discoveries are made.
