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15% cut in oil, gas production costs in Egypt - Daily News Egypt

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15% cut in oil, gas production costs in Egypt

Work programme developed with companies to increase reliance on domestic production: source

The Ministry of Petroleum succeeded in cutting the cost of producing oil and gas by 15%, which saves substantial funds and increases production.

A source at the Ministry of Petroleum and Mineral Resources told Daily News Egypt that a programme was developed to cut production costs through increasing reliance on local products and companies in implementing consulting, constructions, pipelines, and refineries.

The source pointed out that the ministry started implementing these steps since the beginning of last year, which contributed to the success of companies in rationalising expenditures down by 20% in some companies.

He added that the reduction of production costs contributed to saving funds for the state, as the funds returned to foreign partners from reduced production, based on each separate concession area agreement.

Furthermore, the source elaborated that the ministry is conducting meetings with the programme team in order to improve the performance of production activities, which aims to maximise and increase Egypt’s production of crude oil and natural gas, by identifying opportunities to increase production from existing fields.

Over and above, the source continued by explaining that the daily increase in the productivity of crude oil fields was about 31,000 of crude oil, 9,000 barrels of condensates, 1,500m cubic feet of gas, in addition to offsetting the natural pressure decline with 100,000 oil barrels.

The work programmes implemented by the production companies indicated the success of the Khalda Petroleum Company, in the production of crude oil from the limestone layers at Apollonia field in the Western Desert, through re-assessing the old records across several fields, and discovering oil layers that add 700 crude oil per day compared to traditional means.

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