Egypt offers six exploration blocks for bid

Egypt's Exploration Bid Round, Pennzoil Acreage [40588 bytes]

Egyptian General Petroleum Corp. (EGPC) has disclosed details of six offshore and onshore blocks in Egypt to be offered for bidding under the country's first bid round of 1997.

Companies have until Sept. 30 to bid for the blocks, labeled A through F (see map), which include two virgin tracts in the Mediterranean Sea and one in the western desert.

Wafik Meshref, EGPC's vice-chairman, agreements, told OGJ the state company is also negotiating with companies for exploration licenses on two previously relinquished tracts, in what has been labeled Bid Round 2.

Separately, EGPC awarded Penn-zoil Co. unit Pennzoil Exploration & Production Co. the 8.7-million acre West Beni Suef block in Egypt's western desert, about 100 miles southwest of Cairo.

Deepwater blocks

West Mediterranean Blocks A and B are in water as deep as 2,000 m, said Meshref. They cover 21,600 and 15,600 sq km respectively.

No wells have been drilled on these blocks, but EGPC has acquired 275 line km of 2D seismic data on Block A and 1,425 line km of seismic data on Block B.

Meshref said EGPC is considering further specific studies on Blocks A and B. The company is negotiating with PGS Exploration AS, Oslo, to conduct two speculative studies on its behalf.

"On Block A, we are planning a 2D seismic survey of the southern half of the area," said Meshref, "to enhance our knowledge of reef barriers there. On Block B, we are planning a 3D seismic survey over the eastern part of the area to confirm bright spots-which could be gas prospects-there."

Other blocks

Meshref said Blocks C and D were offered in the previous bidding round but did not receive offers.

Block C, known as Siwa, covers 19,140 sq km of the western desert. Block D, called Asyut, covers 34,712 sq km and is bisected by the Nile River.

Nine wells were drilled on Block C by a number of operators, and 88,000 line km of 2D seismic data are available there. One well has been drilled on Block D, where 1,500 line km of data are available.

Block E, along the Gulf of Suez, is called Northwest Gemsa and covers 825 sq km. Here, 18 wells have been drilled by a number of operators, and 2,505 line km of 2D seismic are available.

Block F, in the western desert, covers 62,987 sq km and is known as the North El Mesaha trough. Here, there has been no seismic and no drilling.

"We have aeromagnetic profiles of Block F," said Meshref, "and a regional magnetic map from 8 years ago showing the area is possibly a sedimentary basin. We are expecting a company will acquire Block F on a geophysical option basis. This is a true frontier license area."

The other two tracts (not shown on map) under discussion with companies are relatively small. EGPC has given interested companies until the end of March to complete their bids.

The blocks are in the western desert, near existing producing fields: North Bahariya, which covers 823 sq km; and North Qattara areas A and B, which cover a combined 530 sq km.

Meshref said some of the companies bidding for these two licenses have asked for extensions, so EGPC may consider extending the deadline to the end of April or May.

On North Bahariya, five wells have been drilled by a number of companies, and 1,238 line km of 2D seismic data acquired. On North Qattara, no wells have been drilled, but 755 line km of 2D data are available.

Pennzoil award

Pennzoil's West Beni Suef concession award is subject to ratification by the Egyptian parliament.

Pennzoil has committed to spend $7 million to acquire 2D seismic on the block and drill three exploration wells within 3 years of parliamentary approval. Pennzoil said the northern portion of the block is similar geologically to the geology of adjacent Qarun basin.

West Beni Suef is Pennzoil's fifth Egyptian oil concession. The five cover a total of 9.2 million acres. Other blocks-North July, Southwest Gebel El-Zeit, Southeast Gulf of Suez, and West Feiran-are in the Gulf of Suez.

Pennzoil plans wells on the previously awarded blocks in 1997-98. It operates North July and Southwest Gebel El-Zeit, Repsol SA operates Southeast Gulf of Suez, and Agip SpA operates West Feiran. Pennzoil plans its first exploratory well in fourth quarter 1997 on 49,000-acre Southwest Gebel El-Zeit. Its first commitment well on the 7,800-acre North July block is planned in first quarter 1998.

On the 256,000-acre Southeast Gulf of Suez block, Repsol plans a well in second quarter 1997.

Agip plans a well on the 98,000-acre West Feiran block in 1998.