RWE Dea starts offshore gas field development in North Idku
RWE Dea AG is pleased to announce that a long term gas sales agreement has been concluded with the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) for delivering gas to the Egyptian market from its North Idku offshore concession located in the Nile Delta, Egypt. After the recent acquisition of a 30% interest from Perenco Eastern Mediterranean Limited in the block, RWE Dea now holds 100% in North Idku. Following a successful exploration campaign, resulting in four discoveries out of five exploration wells, RWE Dea has declared commercial gas and condensate reserves in the block.
With the signature of the gas sales agreement, the company has immediately started the first phase of the development of the offshore gas fields discovered. The development and subsequent production will be conducted by the Suez Oil Company (SUCO), a joint venture between RWE Dea and EGPC. First production is planned to begin in 2010. Development will be concentrated in the offshore area closer to shore. The gas produced will be piped to and processed by existing onshore processing facilities in the nearby Abu Qir Bay.
RWE Dea has been an active upstream player in Egypt since 1974 and has been producing oil in the Gulf of Suez for nearly three decades. In addition to these operated Gulf of Suez assets it has non-operated oil and gas production in the Nile Delta and the Western Desert onshore areas. With the start of this gas field development RWE Dea aims to shift from an earlier oil producer status in the country to that of an established gas producer. The North Idku project is the first step toward developing the gas reserves RWE Dea has discovered so far in the prolific Nile Delta area in Egypt both as operator and as partner with other players.
