Ganoub El-Wadi Petroleum Holding Company (Ganope) aims to propose a research and exploration bid for oil and gas in various areas at the beginning of 2016, instead of the end of 2015, due to delays in the process.
Ganope Chairman Abu Bakr Ibrahim told Daily News Egypt the new bid is awaiting approvals from the relevant entities regarding the sites, their number, and areas.
The consortium of the Emirati Pacific Petroleum and the Malaysian Hibiscus Petroleum won the previous bid for the second excavation site located in the south-east of the Suez Gulf, at the cost of at least $68m, and a $2m signing bonus to drill five exploratory wells.
Ibrahim said the Egyptian Trident Petroleum company won the contract for the sixth site located north-west of the Suez Gulf with a cost of at least $4.5m and a signing bonus of $500,000 to drill six exploration wells.
Magawish Petroleum Company won the fourth site located in the north zone of the Suez Gulf on an area of 194 sqkm, with a cost of at least $23.5m and a signing bonus of $2m to drill two exploration wells.
He said the alliance of the two companies, IPR and Mediterra Energy, won two sites located in Kom Ombo. The first is of an area of 1,1860 sqkm, registering a cost of at least $1.85m and a signing bonus of $100,000 to drill one exploration well. The other is on an area of 10,900km squared with a cost of at least $2.45m and a signing bonus of $100,000 to drill two wells.
Ibrahim said Ganope is seeking to attract foreign companies to help resuscitate Egypt from one of the worst energy crises it faced in decades. The company’s subsidiaries’ investment plans include injecting $60m in FY 2015/2016 for the development of fields to offset the natural decline rate. The company also plans included $60m for research and exploration.
Ganope aims to produce 33,000 barrels of crude oil per day during the current fiscal year, compared to about 32,000 barrels per day last year.The natural decline rate of Ganope’s subsidiaries’ wells is estimated at approximately 2,000 barrels per year.