Energean announces final investment decision on offshore Egypt project
The NEA/NI project is a critical one for Egypt’s portfolio and is expected to provide substantial benefits in the long-term production profile in the country
London-based Energean has said that it has made a Final Investment Decision on the North El Amriya and North Idku (NEA/NI) concession subsea tieback project in offshore Egypt.
According to the company, the NEA concession contains two discovered and appraised gas fields (Yazzi and Python) while the NI concession contains four discovered gas fields, one of which is readied for development.
The total expenditure of the project will be approximately $235 million, the majority of which is expected to be incurred in 2022, the statement from Energean said. It added that global oil and gas company TechnipFMC has been awarded the EPIC contract to deliver the project, while the NEA/NI drilling campaign will be integrated with a broader Abu Qir drilling campaign, providing synergies on capital expenditure.
Energean also stated that NEA/NI is due to deliver first gas in 2H 2022 with 49 million BOE (Barrel of oil equivalent) of 2P reserves, 87% of which is gas and peak production is expected to be approximately 90 mmscf/d (million standard cubic feet per day) plus 1 kbopd (thousand barrels per day) of condensates.
When Brent prices are above $40/bbl (barrel of oil), gas will be sold at $4.6/mm BTU, which is the highest achieved to date for shallow water gas production, offshore Egypt. Additionally, the NEA/NI project is a key one for the Egyptian portfolio which will provide substantial benefits to the long-term production profile in the country, whilst bringing additional cost efficiencies and strategic benefits, Energean added.
