Fifteen new oil finds with reserves worth $ 4 billion
Egypt, Economics, 12/27/2001

Egyptian Prime Minister Atef Ebeid has reviewed a full dressed report submitted by Eng. Sameh Fahmy the Minister of Petroleum on the new oil discoveries.

Dr. Ebeid said that oil sector has managed during the period extending from early July until the end of last November, to make 15 discoveries of crude oil and natural gas at the level of the Republic.

Minister of Information Safwat Al Sherif said that Oil Minister Engineer Sameh Fahmy presented a report to the Cabinet in which he said that nine discoveries have been made in areas of the Gulf of Suez and the Western and Eastern deserts which realised 151 million barrels of crude and 27 million barrels of condensates and six discoveries in areas of the Mediterranean, the Western desert and the Delta and a total of 1535 billion cubic metres of gas.

The Minister of Information said that the Oil Minister said that seven wells have entered production at a daily rate of 16,000 barrels of crude and condensates.

As regards gas, the wells are being developed prior to beginning production in future.

The Oil Minister said that the value of added reserves as a result of these discoveries is estimated as follows:

Crude oil: about $ 3.56 billion on the basis of 20 dollars per barrel. The State share is 72 % (about $ 2.6 billion).

Gas: about 2.25 billion dollars on the basis of 1.5 dollars for every one million British thermal unit. The share of the State is 63 % (about 1.4 billion dollars).

Consequently, the total share of the State from added reserves is 4 billion dollars.

Minister of Information Safwat Al Sherif said that confirmed discoveries acquire a big importance in view of the following:

Added reserve total of crude oil and condensates in the first five months of fiscal 2001/2002 represents about 90 % of the planned to be added in the entire fiscal year and which is estimated at about 200 million barrels.

The percentage of success realised during that period is about 70 % which is considered among the highest in exploratory wells by all world standards.

The wells are Tannan 2 in the Eastern desert. Osoris 1 an Ubaid south in the Western desert.

Three experimental wells are being drilled. There are good oil possibilities as the wells have layers bearing crude and gas.

Tests of the wells will be made in the coming two weeks. It is expected to add new reserves which were not included in this note.

Areas in which the discoveries were made are spread geographically across the country which increases the possibility of adding more oil reserves.

Various companies made the discoveries which reflects the success of the policy of the oil sector in encouraging international companies to prospect in the various areas by offering new ideas to attract more international companies in addition to the diversity of geological and scientific theories and technological methods used.

This reflects positively on increasing the chances of success.

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