Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Irish independent Petroceltic gives a flavor of cost pressures hitting midsize independents in the MENA region in the wake of oil prices which have more than halved over the past six months.
The firm, in a 15 January ‘operational update’ says that given “the current low oil price environment” it will focus 2015 capital expenditure (capex) on “its core production and development assets” in Algeria and Egypt – and by implication will focus less on frontier exploration acreage, such as that in the KRG (see above).
A pledge to “optimize production volumes” effectively refers to Egypt, site of some 90% of the firm’s output (all from onshore Nile Delta concessions: 85mn cfd gas and 3,000 b/d oil). Whilst this is decent news for Egypt’s near term gas output, longer-term Egypt is banking on new gas from offshore Mediterranean finds. But there is little cash to kick-off exploration on the two deepwater blocks Petroceltic was awarded in partnership with Italy’s Edison in December 2013 (North Thekah) and September 2014 (North Port Fuad – MEES, 3 October 2014.)
DON'T HAVE AN ACCOUNT?
NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?
By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.UPGRADE