Egypt extends two concessions by 10 years
Offshore staff
HAMBURG, Germany-- RWE Dea and the Egyptian Ministry of Petroleum have agreed to extend the Gulf of Suez Offshore and the North Belayim Offshore concessions for another 10 years.
RWE Dea has produced 590 MMbbl of oil from these two concessions. In total $3.2 billion has been spent during the last 30 years. The signature of these extensions secures further capital investment in the producing fields in Zeit Bay, Ras Fanar, and Ras Budran.
Through the agreement amendments, RWE Dea now will have the right to market the associated gas production from the Zeit Bay field in Gulf of Suez Offshore Concession. Currently, most of the associated gas produced is reinjected for reservoir pressure maintenance, but there is some gas available for sale.
The signature was the final step of an ongoing negotiation process aiming to create further value for both RWE Dea and EGPC in these two concessions, which originally were signed 33 years ago.
07/18/2007