London — Ukraine's state-owned Naftogaz Ukrayiny plans to accelerate oil and gas production at the Alam El Shawish East concession in Egypt and is also looking at options for developing new license areas in the country, it said late Aug. 19.
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Naftogaz's reserves in Egypt are small, at just 0.4 Bcm of gas and 8.6 million barrels of liquids, according to the company's 2019 annual report.
The company had sought to sell its Egyptian business in 2017, but is now committed to further developing its concessions, it said in a statement.
"For the effective development of Naftogaz's assets in Egypt, it is necessary to accelerate the growth of hydrocarbon production in the Alam El Shawish East concession area, as well as to accelerate the implementation of major infrastructure projects," it said in a statement.
The comments follow a meeting with its partner at the concession, Egyptian General Petroleum Corporation (EGPC), in Cairo.
Naftogaz entered into a production sharing agreement in Egypt for Alam El Shawish East in 2006, and began gas output in 2014.
At the time, Naftogaz said it hoped to produce some 7,000 b/d of oil and 0.7 million cu m/d of gas from the concession. Current production data is unavailable.
Naftogaz First Deputy Chairman Serhiy Pereloma also met with Egyptian energy minister Tarek el-Molla.
"The minister assured that Naftogaz is a very important investor," Pereloma said.
"He also noted that both the ministry and the Egyptian partners in concession agreements support all Naftogaz initiatives aimed at improving investment efficiency," he said.
Naftogaz said it would also look to further develop its South Wadi El Mahareeth and Wadi El Mahareeth concessions in Egypt's Eastern Desert following a meeting with its partner there, GANOPE (Ganoub El-Wadi Holding Company).
"The parties discussed the current status of joint projects and the possibility of developing new concession areas in Egypt," it said.
Pereloma said the Naftogaz board had established the development of assets in Egypt as a "clear task."
More generally, the company said it planned to review the terms of contracts with contractors and work to reduce operating, administrative and other costs.