In fiscal 2009, RWE Dea will substantially step up its investments in field development projects in Egypt. Despite the difficult market environment, RWE Dea has affirmed its investment plans.
"Our strategic objective remains to double production of crude oil and natural gas," said Christoph Schlichter, Senior Vice President Production North Africa of RWE Dea AG at a press conference in Cairo. "Our activities in Egypt play an important part in this regard."
Accordingly, a substantial share of investments will be channeled into extensive exploration and production projects in Egypt. "In 2009, we plan to make investments of about 230 million Euros in Egypt, about 20 per cent more than only last year," explained Hans-Hermann Andreae, General Manager of RWE Dea Egypt. This investment volume makes RWE Dea the biggest German investor in the country.
In recent years, RWE Dea already managed to considerably extend its activities in Egypt thanks to major gas finds and new concessions, especially in the highly prospective Nile delta. Plans are now under way to bring the resources discovered into production without delay. In 2008, RWE Dea produced roughly 20,000 barrels of oil equivalents per day via the Suez Oil Company (SUCO), a joint venture established with the Egyptian General Petroleum Corporation (EGPC).
North Idku Field Development
One of the investment projects is the North Idku field development. The concession is located northeast of Alexandria, about 30 kilometers off the Egyptian mainland. In a successful exploration campaign, during which five exploration wells resulted in four discoveries, RWE Dea was able to prove the existence of commercially recoverable gas and condensate reserves in the year 2002. Construction of the two platforms to develop the reservoir is scheduled to begin in autumn of 2009, with completion expected in the spring of 2010. The aim is to launch production from the North Idku field in the year 2010.
"Following the start of the gas field development in the North Idku concession, RWE Dea will increasingly develop from an oil-producing company into an established gas producer in Egypt," Andreae continued.
The field development and subsequent production is in the hands of the operator North Idku Petroleum Company (NIPETCO), a joint venture of the two Egypt-based companies Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and RWE Dea. The project is being managed by the Suez Oil Company (SUCO).
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