The primary indicators of Zohr field’s second well, developed by Italian company Eni, show an increase in gas reserves owing to the discovery of a gas-carrying layer that is larger than that found in the first well.
These results indicate an increase in production to 250m cubic feet per day compared to the initial test results of 150m cubic feet in the concession area of Egypt’s territorial waters in the Mediterranean Sea.
A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that these new results show an increase to 32tn cubic feet compared to 30tn.
The first phase of the gas field’s development includes drilling six developmental wells and adding them to the production line by the end of 2017, with an expected rate of 1bn cubic feet per day. The cost of drilling a single well is estimated at $100m.
Eni is currently drilling the Zohr-5 well and the Saipem 1000 drilling ship moved to the work area in June, the source added.
The source explained that the company’s work on Zohr field is targeting both the implementation of drilling gas wells and the construction and equipping of offshore plants to treat the produced gas and put it on the production map according to a specific timetable. The company is currently implementing production facilities processes for treating the produced gas in Port Said.
The results of previous wells are positive, promising, and larger than the previously calculated quantities, the source said.
The source added that the capacity of Zohr concession indicates an estimated 2.7bn cubic feet per day by 2020. The technical committee which was formed earlier is now receiving the land allocated to start construction and link the gas well to the national grid in that area.
The company aims to provide the national grid with about 900m cubic feet of gas per day by the end of 2017 or the first quarter (Q1) of 2018, he said.
The agreement to develop the Shorouk concession that was signed between EGAS and Eni and includes reserving 40% of the total explored gas for recovering the investments of the foreign partner in the project, including research and development.
The remaining 60% will be divided into 65% for the Egyptian government and 35% for Eni.
The percentage reserved for recovering the expenditures of the foreign partner will go to the Egyptian government after expenditures are recovered, according to the agreement.