Rashid's gas field production hit 320 million cubic feet daily
Egypt, Economics, 10/29/2002

Egypt's President Hosni Mubarak recently gave the go-ahead for the production of natural gas from Rashid (Rosetta) naval field, 60 kilometers north east of Edku city, offshore the Mediterranean, while inaugurating a factory for natural gas treatment, last week.

This is the start of a series of new natural gas discoveries at the concession areas of Rashid and Borollos in the deep Mediterranean waters where major new natural gas finds were achieved.

This puts Rashid area on Egypt's petroleum map as one of the most important economic zones on the international map and as a center and a main harbour for the production, treatment and liquefying to natural gas then exporting it to the European countries.

The start signal will step up Rashid's naval field production to its full capacity to hit 320 million cubic feet daily instead of 200 million cubic feet/d with confirmed reserves estimated at 2.3 trillion cubic feet.

Minister of Petroleum Sameh Fahmy said that Egypt's confirmed oil reserves (oil, gas and condensates) have witnessed a marked steady increase over the past few years going up from three billion equivalent barrels to 9.7 billion barrels in 1999, then to 14 billion barrels this year.

He pointed out that oil products valued at $ 5 billion were exported and foreign investments estimated at $ 5.78 billion were realised. Referring to natural gas confirmed reserves, he said that it spiralled from 12.3 trillion cubic feet in July 1989 to 36.5 trillion cubic feet in July 1999, then jumped up to 58.5 trillion cubic feet in October this year, thus putting Egypt in 17th place among 102 countries of confirmed reserves worldwide.

Answering a question by the president about consumption and export rates, the minister said that up to 40 million tons of gas are locally consumed every year while six million tons are being exported.

The minister added that local consumption rates of oil and natural gas products have increased from 16.5 million tons in 1981/82 to 41.3 million tons in 2001/2002, valued at $ 7.5 billion according to present world prices.

Expounding the targets of the project, its expected production capacity and its importance in attracting Arab and foreign investment, Fahmy said that Egypt ranks 11th on the world list of gas exporting countries. "In 2006, Egypt will become the world's fifth exporter of methane," he added.

It is worth noting that the investment cost of the project amounted to $ 360 million including prospection works, on-shore and off-shore facilities, treatment plants and transportation lines.

The prospective drilling capacity of the Rashid gas rig is set at 275 million cubic meters per day in addition to 300 million barrels per day of highly productive condensates.

The Egyptian General Petroleum Corporation (EGPC) claims 50 percent of the shares in the project, British Gas Company 20 percent, Shell 20 percent and the Italian Edison Company 10 percent.

Egypt signed agreements to export 10 million cubic meters of natural gas per day to France, Spain, Jordan, Syria and Lebanon.

Jordan will be the first recipient of Egypt's natural gas as of the first half of next year via pipeline while France and Spain will be supplied with liquefied gas from Egypt as of the year 2004.

Previous Stories:
  Al-Torgoman: establishment of brokerage back offices   (10/28/2002)
  First conference, exhibition on investment at stock exchange starts   (10/28/2002)
  Egypt -Jordan talks on economic trade and investment   (10/26/2002)

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