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Tuesday, 19 February 2019

Egypt’s oil ministry is talking up Red Sea natgas prospects ahead of new contract terms, E&P bid round

The oil ministry is talking up Red Sea natgas prospects ahead of new contract terms, E&P bid round: Data from oilfield services company Schlumberger’s seismic mapping of energy and mineral resources in the Red Sea how areas with a 70% chance of making natural gas discoveries, a source from the sector said. Schlumberger’s data found that the seafloor resembles that of neighboring Saudi Arabia, which had recently seen natgas discoveries. Data from the full, 10,000 km 2D seismic survey — which was completed by Schlumberger, Norway’s TGS and three other oil companies — has also been compiled, the source noted. The survey came at a combined investment cost of USD 750 mn.

Expect the tenders in 1H2019: The Oil Ministry will launch exploration and production tenders for the area in the first half of the year. The tenders will be subject to the new production sharing contracts set to take effect this quarter. Their launch was expected upon gathering the seismic scans data, but the source said they will likely come in 1H2019. Red Sea Governor Ahmed Abdallah announced last year that there are potentially “huge amounts” of both natgas and oil reserves in the area. The governor said the fields could be larger than the Zohr supergiant field in the Mediterranean.

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