Monday 25 Nov
Shell Egypt is set to boost its natural gas production in Egypt by 170 million cubic feet per day by the end of December 2023, tapping into deep-water sites in the Western Delta. This increase is part of a joint venture between Egypt, Shell, and Petronas to develop three fields in the Western Delta offshore area. Production has already seen significant growth, with 40 million cubic feet per day added in October and 65 million cubic feet per day in November. An additional 65 million cubic feet per day is expected to come online in December.
Located approximately 90 kilometers off the coast of Egypt in the northwestern Nile Delta and 110 kilometers northeast of Alexandria, the Western Delta gas fields operate in water depths ranging from 300 to 1200 meters. To further bolster production, British Petroleum (BP) will commence drilling two new natural gas wells in the region next January, investing $160 million in the project.
Burullus Gas Company, the primary operator of the concession, is a joint venture between Shell Egypt, Petronas, and the Egyptian General Petroleum Corporation. To incentivize increased gas production, Egypt has introduced new measures for foreign companies, including the ability to export a portion of their new production to offset outstanding debts. Additionally, the companies' share of the new gas production has been increased.
