BG International Announces Gas and Condensate Discovery Offshore Egypt
BG International and its partner, Edison International, today announced a further significant discovery of hydrocarbons in the West Delta Deep Marine Concession (BG 50 per cent, Edison 50 per cent).
The Sapphire-1 discovery well was drilled on a new geological feature and is the first well to have encountered significant volumes of condensate in the West Delta Deep Marine Concession.
The Sapphire-1 well, located 65 kms north east of Alexandria, was spudded on July 16. During drill stem testing the well flowed at 35 million standard cubic feet of gas per day (mmscfd) and 1100 barrels of condensate per day. The flow rate was constrained by the testing equipment.
This well is the ninth consecutive successful exploration and appraisal well drilled in the West Delta Deep Marine Concession in the past two years and provides further confirmation of the significant hydrocarbon potential of this Concession.
Sapphire-1 was drilled by Burullus Gas Company, the concession operating company.
BG International, Edison International and the Egyptian General Petroleum Corporation (EGPC) signed an agreement in March which paves the way for implementation of a gas export scheme using liquefied natural gas (LNG). Discussions with EGPC to finalise a definitive agreement are ongoing.
The reserves indicated from the results of the Sapphire-1 well adds to the existing significant volume of gas reserves in the West Delta Deep Marine Concession available to access the Mediterranean gas markets. Today's announcement reinforces the commitment of BG International and its partner Edison International to work in close co-operation with the Egyptian Government to develop gas exports from Egypt.
Notes to Editors
West Delta Deep Marine:
In August 1999, BG International and its partner Edison International signed a Gas Sales Agreement with the Egyptian General Petroleum Corporation which triggered the development of the Scarab/Saffron field in the West Delta Deep Marine Concession. The Scarab/Saffron field is the first gas field development in the deepwater off the Nile Delta and is the largest gas field development in Egypt.
In July 2000, BG International and its partner, Edison International, announced the drilling of two successful appraisal wells in the West Delta Deep Marine Concession in Egypt. The wells, Simian-2 and Simian-3, were drilled to appraise the Simian Field discovered in 1999.
In addition to the results from Simian-1, 2 and 3, a further well, P12/13, located 6 km from Simian-1, tested at 45 mmscfd.
BG International, the exploration and international gas supply business of BG Group plc, has been active in Egypt since 1989 and, having achieved major growth and diversification, has significant activities throughout the gas business. These include developing the Rosetta and Scarab/Saffron gas fields, and developing the gas market and pipeline infrastructure in Upper Egypt.
© 2000 Mena Report (www.menareport.com)