Oil and gas company Energean has achieved the first gas from a well located offshore Egypt while the remaining wells are expected to come online later this year. This brings the firm closer to achieving its 200 kboed medium-term production target.
North Abu Qir PIII (NAQ PIII) platform; Source: Energean
Back in January 2023, Energean outlined that its “key development projects” – Karish North, NEA/NI, Cassiopea – would enable it to deliver its 200 kboed mid-term production target. To this end, the company disclosed plans for the first gas from NEA/NI in the first half of 2023 while the firm’s expansion in Israel, including a development concept for the 67 bcm Olympus area, was expected to be communicated in 1H 2023. On the other hand, the first gas from Cassiopea in Italy was anticipated in 1H 2024.
In an update on Thursday, 9 March 2023, Energean confirmed that the first gas had been delivered at the North El Amriya and North Idku (NEA/NI) project off Egypt. According to the company, the gas is being produced from the NEA#6 well while the remaining three wells are expected to be brought online over the course of 2023.
Mathios Rigas, Chief Executive Officer of Energean, commented: “Our successful development of first gas at NEA/NI is a good example of our commitment to Egypt and longstanding partnership with the Egyptian Ministry of Petroleum, EGPC and EGAS, creating value for all stakeholders.
“We are delighted to bring on new production into our East Mediterranean gas-focused portfolio, as well as meeting the needs of Egypt and Egyptians through underwriting energy security with reliable supply that has a lower carbon footprint than alternative sources of domestic energy.”
Located in shallow water off Egypt, the NEA/NI development contains an estimated 39 mmboe of 2P reserves (88 per cent gas) with net working interest production expected to peak at 15 – 20 kboed (88 per cent gas) in 2024.
Energean claims that this development leverages existing infrastructure and involves the subsea tie-back of four wells to the firm’s North Abu Qir PIII (NAQ PIII) platform. The company sanctioned the project in January 2021, representing a development period from the final investment decision to the first gas of two years and two months.
The NEA and NI concessions are both 100 per cent owned by Energean and whilst operated through separate 50/50 JV companies, both fall under the overall management of Abu Qir Petroleum. While NEA contains two discovered and appraised gas fields – Yazzi and Python – NI, which is split into northern 21 and southern areas, contains four discovered gas fields to be developed as satellite fields to the Abu Qir gas-condensate offshore and onshore infrastructure.
On the other hand, the Python and Yazzi fields in North El Amryia Concession were discovered by RWE in 2010 and 2011 through the exploratory wells NEA_3X and NEA_4X, respectively. The PSC is set to expire on 31 December 2039.
Moreover, Energean’s NI-Block A field was discovered by RWE in 1999 through the exploratory well NI_1X while NI-Block B was discovered in 1999 through two exploratory wells: NI_2X and NI_4X. The North Idku PSC is also slated to expire on 31 December 2039.
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