New Agreement Gives Amoco 500 Million Cubic Feet a Day of Natural Gas Sales to Egyptian Market

abarrelfullabarrelfull wrote on 09 Aug 2012 08:26
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14 October 1998

Amoco Egypt, together with its partners, Egyptian General Petroleum Company (EGPC) and IEOC, an affiliate of the Italian oil and gas company, ENI, has signed a major long term natural gas sales agreement for the Temsah natural gas field in the Nile Delta offshore Egypt. The agreement plus others involving the Ha'py and Baltim East fields, means that Amoco has now achieved gas sales agreements totalling half a billion cubic feet of natural gas a day (net) to the Egyptian market.

Field development costs for Temsah will be around $700 million with gas deliveries expected to begin at a rate of 35 million cubic feet per day in the second half of 1999 rising to 480 million cubic feet a day by 2003. The gas sales contract will run for 20 years and has extension options. Temsah has proved reserves of approximately 3.9 trillion cubic feet of gas.

Amoco and IEOC each hold 25 per cent of Temsah field with 50 per cent held by EGPC. The field is operated by IEOC. All of the gas will be sold into the Egyptian domestic market.

Bob Sheppard, President of Amoco Egypt, said : " This agreement paves the way for the development of Temsah, one of the Nile Delta's most significant gas fields, and is a further indication of the accelerating pace of development activity in the Delta. With increasing volumes of gas being committed to the domestic market in Egypt, we remain optimistic that the natural gas resources in the Delta will provide volumes sufficient for both the domestic and export markets."

Amoco is currently developing the Ha'py field in the Offshore Ras El Barr concession in the Delta. This field, being developed at a cost of $248 million, is scheduled to begin deliveries of around 284 million cubic feet of gas per day by early 2000. Amoco is also participating in the development of the IEOC operated Baltim East field with initial volumes of 150 mmcfd expected to begin flowing in the same timeframe.
Amoco is also pursuing Nile Delta gas export opportunities throughout the East Mediterranean region, including pipeline gas to Jordanian markets and liquefied natural gas to Turkish markets.

Amoco Egypt is a part of Amoco Corporation, a global producer of oil, natural gas, refined products and chemicals, with revenues of more than $36 billion in 1997.


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