Dutch company Shell targets drilling 33 wells in its concession areas that are operated by Badr El Din Petroleum Company (BAPETCO) during the next fiscal year (FY).
The plan includes 19 wells to develop gas production, 10 wells to inject water into, and 4 wells to explore for gas.
A senior source in the petroleum sector told Daily News Egypt that Shell has reduced the number of wells to explore for gas in its concession areas to four wells in its plan for FY 2016/2017, compared to seven wells during the current FY 2015/2016.
Shell drilled 25 developmental wells, 7 exploratory wells in its concession areas through BAPETCO during the current FY, and tied the production upon completing the drilling process according to the approved plan, he explained.
The source added that Shell collected $342m in investments for the next FY compared to $442m in investments for the current FY 2015/2016 in its concession areas in Egypt. The investments will be used to carry out development, research, and exploration processes that aim to increase oil and natural gas production rates in the field.
Shell approved the investment budget for FY 2016/2017 after reducing them by $100m from the current FY, added the source.
He pointed out that Shell has reduced its expenses in the concession areas in Egypt because the Egyptian government does not repay the value of the gas.
BAPETCO seeks stability of natural gas and crude oil production rates, and to counteract the natural attrition of old tanks by using new technologies, such as water injection, to support depleting reservoirs’ pressure.
The source explained that the company’s production during the current FY amounted to 143,000 barrels of oil per day, an increase of 21% from the planned production average of 500m cubic feet of gas per day, and 51,000 barrels of oil and condensates.
Shell announced that it would end its oil and gas operations in 10 countries as an attempt to reduce costs and streamline operations after acquiring BG group worth $54bn.