Cairo – Mubasher: Egypt added additional 330m feet to its daily production of natural gas by the end of last August, after starting production at new four wells.
Earlier, Italian company Eni completed the drilling of the third gas well at its giant offshore Zohr gas field in Egypt. The initial estimations of the third deepwater well are larger than the first and the second, with estimated reserves of 30tn cubic feet.
Eni seeks to finish the first stage of the Zohr development lease, which includes drilling six gas wells, by the end of 2016.
The agreement for the development of the Shourouk concession, signed between the Egyptian Natural Gas Holding Company (EGAS) and Eni, states that 40% of the value of the total discovered gas will be set aside for the recovery of the foreign partner’s investments in the project, which includes research and development.
As for the remaining 60% of the value, 65% of that will be distributed to the Egyptian government and 35% to Eni.
The rate assigned for the foreign partner’s expenses will default back to the Egyptian government after the repayment of the foreign partner’s investments, in accordance with the agreement signed between EGAS and Eni last year.
