EGPC signs partnership agreement with Kuwait Energy for 15% of Iraq’s Seba gas field
The Egyptian General Petroleum Corporation (EGPC) has signed a partnership agreement with Kuwait Energy for the Seba gas field located in southeast Basra, Iraq. The agreement stipulates that EGPC owns 15% of this field.
The project is considered the second partnership agreement between EGPC and Kuwait Energy, the first partnership being the Fayhaa petroleum field in Basra, with EGPC owning 10% of this field.
Minister of Petroleum Tarek El-Molla said that the agreements seek to strengthen the cooperation between the EGPC and the Kuwaiti company in order to expand work in oil and gas production outside Egypt, as well as to achieve mutual economic benefits for the involved parties.
El-Molla explained that the field will begin actual production in 2017 with initial rates of 70m cubic feet of gas per day. This is expected to increase to a range of 100-150m cubic feet of gas per day.
The project’s general contractor is Petrojet, which will carry out the entirety of the $200m-worth of engineering and executive works for the project.
“The project paves the way for more expansions by EGPC in Iraq, allowing it to utilise the distinctive opportunities present in the country, while benefiting from the experience of Egyptian companies like Petrojet in the implementation of gas production projects in Iraq,” said Sara Akbar, CEO of Kuwait Energy.
She added that efforts are ongoing to increase Fayhaa crude oil field’s production from 6,000 barrels per day to 15,000 barrels of crude oil per day by mid-November. This increase is expected to take place once the Fayhaa-2 well is added to the production line.
The new well, Fayhaa-3, is being drilled; the project’s first phase will bring production up to 50,000 barrels per day by the beginning of 2019, to reach 150,000 barrels per day during the second phase in fiscal year 2020/2021, according to Akbar.
(Source: Daily News Egypt)