RWE Dea Outlines North Africa Production Plans
Germany’s RWE Dea says that it expects to bring major gas discoveries in Egypt and Algeria on stream in 2012 and 2013, in addition to the North Idku field in the offshore Nile Delta, which is due to start production in 2010 at a rate of 1.1 bcf/year. RWE estimates its capital expenditure for Egypt, Libya and Algeria between now and 2011 will be around €550mn.
A company spokeswoman told MEES that the numerous oil discoveries in Libya that the company has announced in the last two years are currently undergoing appraisal, with one well being tested and a further one planned. The final appraisal report and the field development plan are in preparation, and therefore still need to be discussed and finalized with Libya’s state-run NOC. As yet, RWE has no production in Libya. But underlining the value of the company’s assets there, at the beginning of October it announced its sixth oil discovery since late 2006 on concession NC-193 in the Sirte Basin, where 33.8° API oil flowed at a rate of 426 b/d (MEES, 13 October)
In Egypt, the BP-operated North Alexandria and West Mediterranean Deep Water (WMDW) concessions are expected on-stream in 2012-13. No development agreements have yet been signed, with the Egyptian Ministry of Petroleum, RWE and BP still negotiating production volumes and development costs, but the amendments agreed to earlier this year call for an investment of $800mn. North Alexandria contains the giant Raven gas field and a number of smaller discoveries, while WMDW holds the Ruby and Polaris gas fields. The North Idku permit will deliver gas to Egypt’s domestic market, via the onshore processing facilities at Abu Qir (MEES, 31 March).
Unlike the other North African countries where it operates, RWE has production assets in Egypt. The company claims to have produced, together with its partners, more than 550mn barrels of oil over the last 25 years from three fields in the Gulf of Suez, namely Ras Budran, Ras Fanar and Zeit Bay.
In Algeria, the German firm partners Spain’s Repsol-YPF as operator and Italy’s Edison in the Reggane North and M’Sari-Akabli licenses in the southwest desert region. At least six gas discoveries have been registered on the two concessions, and RWE estimates its entitlement to the total undiscounted gas resources there is around 11.3 bcm (MEES, 22 September). RWE is hoping to see the first version of the Reggane development plan, which would bring these and other gas fields in the area on stream, by end of this year. The company spokeswoman told MEES last week that first gas is now expected by end 2012 or early 2013.
Copyright MEES 2008.
