AFRICA

Opportunity knocks

Look for continued exploration success in the West; massive gas development in the North. Elsewhere, much of the continent remains underexplored.

Egypt and Sudan sections by Dr. A. F. Alhajji, Contributing Editor

Egypt

Declining crude production, rising gas output, increasing energy consumption, economic reform and privatization are changing the structure of the oil and gas industry in Egypt. Recent developments indicate that this year could witness the "real" start of the Egyptian offshore oil and gas industry. Egypt is trying to establish itself as one of the worlds’ leading gas exporters.

Exploration. Apache announced a string of discoveries during the past year. Last February saw two discoveries: Akik 1X, which tested 23.4 MMcfd and 1,685 bpd of condensate (bcpd); and Karama 1X, which tested 1,520 bpd of 43°API crude and 500 Mcfgd. Apache also announced a discovery in Neath South 1X in the Khalda Offset concession. The well tested at a combined rate of 2,778 bopd and 4.5 MMcfgd. Apache’s discoveries continued in April with the Akik 1X well, where the Lower Cretaceous Alam el Bueib formation flowed at 26 MMcfgd and 2,366 bcpd. This doubled the well’s previous output to 49.4 MMcfgd and 4,051 bcpd.

In Egypt’s Western Desert, Apache Corp. and Repsol YPF reported that the Salam North 7X discovery, an exploratory well on the Khalda Concession, tested 18.2 MMcfgd and 1,233 bpd of liquids from two zones. The well confirmed a new Jurassic accumulation of gas. (Photo courtesy of Apache Corp.)

Last April, TransAtlantic Petroleum announced the discovery and successful appraisal of the Lagia oil and gas field in the Central Sinai concession, Gulf of Suez. The Lagia 6 discovery flowed oil and gas at rates up to 152 bopd and 300 MMcfgd.

Africa Click for enlarged view

Other successes include: Novus Petroleum’s three oil discoveries in the Khalda concession of the western desert, with combined production of 6,000 bopd, and Tanganyika Oil Co.’s Hana 1 discovery in the Gulf of Suez.

Shell is in the process of evaluating results of 3-D and 2-D seismic surveys in its 16,000-sq-mi deepwater concession in the Mediterranean. Shell expects to spud the first well at the end of this year. If discovered, production of oil and gas from this concession is not expected until at least 2005.

Drilling/development. Wells drilled in 1999 totaled 169, about flat with 1998. However, the number of oil wells drilled increased by 45%. Producing oil wells increased by 79 and stood at 2,011 by December 1999. It is forecast that the number of wells drilled will stay the same in 2000, including the drilling of 59 offshore wells.

TransAtlantic reported the completion of its Hana 6 oil well in the Hana development. The well is expected to produce 1,500 bopd. Last May, Tanganyika Oil Co. Ltd. announced the completion of its development program in Hana field in the Suez basin, after drilling six successful wells. Oil production from these wells is expected to increase to 5,000 bpd from 2,000 bpd. Plans are underway to install permanent treating, handling and pipeline facilities capable of processing 15,000 bopd.

In an effort to increase Egyptian gas exports, Egyptian Petroleum Corp. signed a letter of intent with BP Amoco to develop gas facilities, including two trains for LNG and two trains for NGLs.

Production. Crude production declined in 1999 by 4.3%, to 760,000 bpd. Gas production increased by 20% and was expected to increase further in 2000. BP Amoco recently announced the beginning of Ha’py field production from the offshore Ras El Barr concession, Nile Delta basin. The field will produce 284 MMcfgd and 500 bcpd.

Crude and condensate reserves were estimated at 3.77 billion bbl in 1999, nearly flat with the previous year. However, gas reserves increased by an impressive 29% in 1999 to 42.5 Tcf.

Significant African discoveries July 1999 – July 2000