When a JV of London-listed Capricorn (formerly Cairn) and local firm Cheiron took over Shell’s substantial assets in Egypt’s Western Desert oil heartland in September 2021 the plan was that a surge in investment would see a rapid output rebound (MEES, 10 September 2021). So far things aren’t going to plan.
Capricorn, in its 1H results on 6 September, blames logistical delays as the key reason the JV’s Egypt output is set to come in at just 69,000 boe/d for 2022, some 14% below guidance. Far from the rebound envisaged at the start of the year, output fell for the first half of 2022 with latest guidance implying a further slump for 2H 2022 (see chart 1). (CONTINUED - 1754 WORDS)