The well has flowed dry crude oil at an average rate of 1 thousand bpd during the testing. Appraisal of drilling results, adjustment of the field reserves, further drilling-out and development of field infrastructure is presently going on. First commercial oil from the new field has come into market already. It is expected that the production on the block will reach 1.5 thousand bpd.
The Production Sharing Agreement on Meleiha block came into force in August 1978. The Extension of the Concession Agreement on the Meleiha Block up to 2024 as ratified by the Parliament of Egypt has come into effect this April. Parties to the PSA are IEOC Production (a subsidiary of the ENI) with a 56% interest, LUKOIL Overseas (24%) and the International Finance Company (IFC), which holds a 20% interest. The project operator is Agiba Petroleum, a joint venture of the state-owned Egyptian General Petroleum Corporation (EGPC), IEOC and IFC.
More than 17 million tons of oil has been produced on the block during the last 30 years. The operating well stock is 141 units, while 12 of them (with a combined rate of 3,200 bpd) were drilled since the beginning of this year.
800 thousand tons of oil were produced on the concession in 2006. Meleiha is one of the most profitable and efficient projects of LUKOIL Overseas.
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