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Apache Signs New Western Desert Exploration Agreements

Submitted by Editorial Team on February 5, 2010 – 8:48 pmNo Comment

Egypt’s Ministry of Petroleum has signed two agreements with US oil firm Apache Corporation and state-owned Egyptian General Petroleum Corporation (EGPC), for the exploration and exploitation of hydrocarbons in Egypt’s Western Desert. Under the terms of the agreements, which cover 6,400 sq km west of the Nile Delta, Apache will drill 13 exploration wells and invest $55mn, according to a statement from the ministry. Minister of Petroleum and Mineral Resources Sameh Fahmy was quoted in the statement as saying that plans are still in place to double oil production in the Western Desert, which already accounts for 40% of the country’s liquids production, over the next 10 years. Apache, the largest producer of hydrocarbons in the Western Desert, has invested some $8bn in its 15 years of operations in the country. The US firm made a string of new oil and gas discoveries in the region in 2009, including four in the Khalda area, which it operates with a 100% interest, and two on its Matruh concession. The company’s gross oil and gas production in Egypt had exceeded 275,000 b/d in oil equivalent by August 2009 (MEES, 3 August 2009).

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