The Egyptian Gulf of Suez Petroleum Company “GUPCO” is preparing to start drilling 11 wells for oil and gas exploration, to increase Egypt’s hydrocarbon reserves.
Today, Monday, January 30 (2023), Egyptian Minister of Petroleum Tariq El-Molla said, during the approval of the company’s planning budget for the fiscal year (2023-2024), that there is importance to accelerating the implementation of drilling plans and increasing oil production, according to a statement by the Ministry of Petroleum and Mineral Resources.
Al-Mulla explained that the current period is a great opportunity to accelerate plans for oil and gas exploration and production operations, in light of the significant rise in global oil prices to levels that encourage investment, according to statements seen by the specialized energy platform.
The minister added that it is important to continue following up the environmental requirements and treatment of industrial waste in the Gulf of Suez region, to implement the sector’s work strategy, to preserve the environment and support compliance with the environment law and achieve sustainability.
Drilling development and exploration wells
For his part, the head of the Gulf of Suez Petroleum Company “Gupco”, Eng. Salah Abdel Karim, reviewed the company’s investment plans for the new fiscal year, which are estimated at $588 million, to implement projects that improve crude oil production rates, to reach 70 thousand barrels per day.
Eng. Salah Abdel Karim explained that these investments will be made through drilling developmental and exploratory wells, with the aim of exploring for oil and gas, and expediting the completion of projects related to production, while paying attention to occupational safety and health and providing a safe work environment.
He added, “It is planned to drill 11 exploratory and development wells during the current fiscal year 2023-2024, in addition to the completion of the new production station for the North Safa field, in preparation for the start of production from the field at a daily production rate of 8,500 barrels.”
The head of “Gupco” pointed out that the North Safa well has reserves estimated at 170 million barrels of crude oil, and that the “Gupco” company aims to implement an ambitious plan to rehabilitate the infrastructure and modernize the facilities, to ensure the continuation of production and preserve the safety of the environment.
Oil and gas production in Egypt
On December 29, the Egyptian Ministry of Petroleum announced that it had been able to implement an extensive program of work during the past year 2022, which resulted in an increase in oil and gas reserves, by issuing international bids and intensifying search and exploration operations, according to a statement by the ministry.
The following graph, prepared by the specialized energy platform, indicates the volume of crude oil, condensate and gaseous liquids production in Egypt until 2021:
According to the report, Egypt’s total production of oil and gas amounted to about 79.5 million tons, with 27.8 million tons of crude oil and condensate, 50.6 million tons of natural gas, in addition to 1.1 million tons of domestic gas, according to data seen by the energy platform. Niche.
The following graph, prepared by the energy platform, shows the volume of natural gas production in Egypt, according to the latest data for 2020:
The report pointed out that Egypt is working to increase these quantities during the new year 2023, by offering more tenders, bids, and land and sea plots to international companies for exploration, to increase reserves and quantities produced.
Oil and gas exploration
On December 27, the Ministry of Petroleum and Mineral Resources presented 12 blocks for oil and gas exploration in the Mediterranean and the Delta region to international companies, according to information seen by the specialized energy platform.
Petroleum Minister Tarek El-Molla announced that the new international bids include 12 areas in the Mediterranean and the Nile Delta, with 6 offshore areas, and the same on land, all of which are open to companies wishing to explore for oil and gas in Egypt.
The ministry made it possible to participate in the bidding for international companies through the Egypt Digital Portal, while setting the deadline for April 30, 2023, as it believes that this step would encourage companies operating in Egypt to increase their investments.
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