RWE Dea, El Paso swap Egyptian asset interests
El Paso E&P agreed to grant RWE Dea a 40% equity interest in the South Mariut concession in the Western Desert and in return has received a 40% equity stake in the adjoining Tanta Concession.
OGJ International Editor
LONDON, Feb. 12 -- El Paso Exploration & Production Co., Houston, agreed to grant RWE Dea AG a 40% equity interest in the South Mariut concession in the Western Desert and in return has received a 40% equity stake in the adjoining Tanta Concession in the Nile Delta transition area.
The deals will help the companies to drive exploration of these onshore prospective areas by reducing risk as prior to this, each had a 100% interest in their block.
"After the assignment of the respective interests, RWE Dea will have a 60% operated interest in the Tanta block and a 40% interest in the El Paso-operated South Mariut block. These assignments have been approved by the Egyptian authorities," RWE said.
It signed the Tanta concession agreement with the Egyptian government in 2007 and plans to drill the first well out of two in 2010 under its initial 3-year exploration.
In 2007 El Paso successfully bid for the South Mariut block and has shot 800 sq km of 3D seismic. Similarly it is a 3-year exploration program and must drill five wells; the spud date of the first well was Jan. 31.
Contact Uchenna Izundu at email@example.com.