Cairo opens up more acreage

04 July 2003
The Petroleum Ministry has launched two new bid rounds covering 15 oil and gas exploration blocks across the country. The concessions are located in three main areas: the Nile Delta and along the Mediterranean coast; the Gulf of Suez - including one onshore block on the Sinai coast; and the south, where three major concessions are on offer covering some 95,227 square kilometres of land on either side of the Nile between Aswan and Naga Hammadi. The bid deadline for both rounds is 30 July.

The southern concessions are the first to be tendered by the newly-created Ganoub el-Wadi Petroleum Company (Ganope). Responsible for all upstream and downstream development in Upper Egypt, Ganope becomes the fourth pillar of the Petroleum Ministry, alongside Egyptian General Petroleum Company (EGPC), Egyptian Natural Gas Holding Company (EGAS)and Egyptian Petrochemicals Holding Company (ECHEM). The chairman of Ganope is Hassan Akl, former EGPC vice-president.

The three southern blocks, which will be awarded on a production sharing basis, cover a major tract of desert in the Komombo region, which lies between the Toshka valley and protected areas along the Red Sea coast. Following an agreed exploration period, companies have the option to take up a 20-year development lease following the first discovery of oil or gas, with an optional five-year extension period.

Similar conditions are expected to apply to the 12 blocks put out to bid by EGPC, which include eight onshore blocks in the north: El-Fayum (4,529 square kilometres); West Wadi el-Rayan (1,287 square kilometres); East Kanayis (4,298 square kilometres); North Tarek (626 square kilometres); West Kanayis (3,258 square kilometres); East Kalabsha (2,115 square kilometres); and Shushan (three areas covering 831 square kilometres in total). The four Gulf of Suez blocks include: East Ras Budran (520 square kilometres); South October (424 square kilometres); North Ramadan (269 square kilometres); and North Shadwan (1,174 square kilometres). Full well, seismic and navigation data are available from EGPC at its headquarters in Maadi. Further information on both bid rounds can be found at www.egpc.com.eg.

The two bid rounds follow hard on the heels of the November 2002 exploration round, for which a number of concessions have yet to be awarded (see page 14; MEED 24:1:03).

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