Positive news regarding Egypt’s gas output has been scarce in recent years, but Shell has now provided a glimmer of hope. The company, which operates the key West Delta Deep Marine (WDDM) asset with a 50% stake alongside Malaysian state firm Petronas, has successfully implemented a major production increase through development drilling. WDDM output is now at an eight-year high of 405mn cfd, more than double last year’s average of 180mn cfd, according to MEES calculations.
Cairo has been banking on development drilling at key offshore projects such as WDDM and Eni’s Zohr to stem Egypt’s steep production declines that have made it dependent on imports of LNG and piped gas from Israel (MEES, 5 September). A seasonal dip in gas demand coupled with incremental output gains from key projects might even enable Egypt to export some LNG cargoes this winter, MEES understands. (CONTINUED - 840 WORDS)