London-based Energean has taken the final investment decision on the North El Amriya and North Idkunea (NEA/NI) concession subsea tieback project offshore Egypt.
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.
NEA/NI is due to deliver first gas in 2H 2022 with 49 million boe of 2P reserves, 87 per cent of which is gas and peak production should be approximately 90 mmscf/d plus 1 kbopd of condensates.
The NEA/NI subsea tieback 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 said.
When Brent prices are above $40/bbl, gas will go for $4.6/mmBTU, highest achieved to date for shallow water gas production, offshore Egypt.
According to Enegean, total capital expenditure should be around $235 million, the majority of which is expected to be incurred in 2022.
TechnipFMC has won the EPIC contract to deliver the project.
The NEA/NI drilling campaign should also integrate with a broader Abu Qir drilling campaign, providing synergies on capital expenditure, the company noted.