RWE Dea extends Egyptian concessions

RWE Dea AG subsidiary RWE Dea Suez GmbH has signed agreements with EGPC, the Egyptian Ministry of Petroleum, allowing for the extension of the Gulf of Suez offshore and the North Belayim offshore concessions by a further ten years.

Offshore staff

CAIRO, Egypt -- RWE Dea AG subsidiary RWE Dea Suez GmbH has signed agreements with EGPC, the Egyptian Ministry of Petroleum, allowing for the extension of the Gulf of Suez offshore and the North Belayim offshore concessions by a further ten years.

RWE Dea Suez GmbH has already produced 590 MMbbl of oil from these two concessions. In total $3.2 billion have been spent during the last thirty years, the company says. The extensions secure further capital investment in the producing fields in Zeit Bay, Ras Fanar, and Ras Budran.

Through the agreement amendments, RWE Dea has the right to market the associated gas production from the Zeit Bay field in Gulf of Suez offshore concession. At present, most of the associated gas produced is reinjected for reservoir pressure maintenance, but there is some gas available for sale. Facilities owned by the joint venture are available for handling this sales gas, so the majority of future investments are aimed on new wells and production optimization activities, the company says.

7/20/2007

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