Shell VP conducts talks with Egyptian oil minister
The Shell Oil Company had invested nearly $3.5 billion in its oil and gas exploration and excavation operations in Egypt over the past 20 years, one billion of which was invested in 2001 alone stated Shell Vice President Jurgen Vir, during a recently visit to Cairo, Al-Ahram reported.
Vir conducted talks with Egyptians officials including Petroleum Minister Sameh Fahmi, to discuss future expansion plans for Shell’s operations in Egypt, in a bid to increase the country’s gas and oil reserves through developing existing oil fields.
Shell in Egypt hit record production levels for gas this year, at some 700 million standard cubic feet per day, said Shell Egypt Chairman Andrew Vaughan. This output came from the company’s operations in the Badr El Din field and Rosetta field, where the DCQ (Daily Contracted Quota) has been reached.
Despite some subsurface difficulties, the Obaiyed field is also producing reasonably well, said Vaughan. "The downstream gas business is also very exciting and we are awaiting the start-up of the Fayum gas pipeline this autumn. In Egypt, some 20 percent of industry is still not connected to the gas grid and is, therefore, using imported oil, so I believe there are great opportunities for development here," he added.
Shell started its operations in Egypt in 1911, operating under the name Anglo-Egyptian Oil Company (AEO). In 1964, the company ceased operations in Egypt, when Shell was nationalized. Shell returned to Egypt in 1974 with two new concessions in the Western Desert with another partnership, Suco, in the Gulf of Suez with Deminex and BP.
In 1979, Shell Egypt N.V. was established, when it started its ventures with the Badr El-Din and Sitra concessions, managed through the sister company Bapetco. The partnership with EGPC was established in 1983.
Shell Egypt N.V. is involved in major exploration and production activities throughout Egypt, including the Obayied, NE Abu Al-Gharadiq, South Balayim, Rosetta Offshore, Matruh On & Offshore projects, North Rahmi, North Abu Rudies and NW Demiatta. In 1998, Shell Egypt N.V. was awarded a deepwater block in the Mediterranean of some 43,000 square kilometers. — (menareport.com)
© 2001 Mena Report (www.menareport.com)