Skint, Petroceltic Sells Egypt Blocks

Dublin-based independent Petroceltic on 18 February sold its stakes in three Egyptian exploration blocks to its Italian partner Edison. This leaves the cash-strapped firm, with a key loan repayment due later this month, ever more dependent on its key 2.1 tcf Ain Tsila project in Algeria proceeding like clockwork. The signs for this are not great: the firm says “the current best estimate for first gas production is now early 2019:” it had long targeted 2018 (MEES, 3 July 2015).

The cashflow to pay for Ain Tsila comes from its gas output from 12 fields in Egypt’s Nile Delta. But here output is in freefall: from 105mn cfd in 2013, to 95mn cfd for 2014 and just 60-65mn cfd for 2015. And of course falling prices don’t help either (on the plus side Egyptian gas prices, though not those for associated liquids, are fixed; on the downside payments have been anything but prompt – see p15).


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