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Oil & Gas

El-Molla announces completion of administrative procedures for Zohr development

Posted: February 21, 2016 at 8:56 pm   /   by   /   comments (0)

zohreniegyptThe Minister of Petroleum and Mineral Resources, Eng. Tarek El-Molla, announced that the administrative procedures have been completed for the development of Zohr, the super-giant gas field in the Shorouk concession in Egypt’s Mediterranean Sea economic waters, pointing out that the field’s development lease to Eni’s wholly-owned company Ieoc has been ratified.

Eng. El-Molla explained that Petro Shorouk, a joint venture between The Egyptian Natural Gas Holding Company (EGAS) and Ieoc, has been established for the task of developing the Zohr gas field, while project-related activities will be conducted by Petrobel. El-Molla also noted that Egyptian petroleum companies’ role has been maximized in activities related to the field’s development and onshore facilities, as an agreement has been made for the participation of Petrojet and ENPPI in the execution of the project alongside Italian company Saipem, and the maximization of the local component in work related to the implementation of the project which has an investment of $12 billion.

Eng. El-Molla added that it is planned for the Zohr field to start production before the end of 2017, with an increase in production rate during two years to reach a peak production rate of about 2.7 billion cubic feet of gas per day, and the entire production of gas to be directed to the domestic market.

The Minister also added that the Saipem drillship is currently drilling the Zohr-2 well which will be completed during the next month.

The Zohr gas field discovery was announced on August 30 2015 after the successful drilling of the Zohr-1 well, and is the largest discovery ever made in Egypt and in the Mediterranean Sea, with estimated reserves of 30 trillion cubic feet of gas.

(Source: Ministry of Petroleum)

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