DEA to invest $500 million in Egypt over next three years
- Business & Finance
German oil and gas company DEA plans to invest about $500 million in its projects in Egyp tover the next three years and double its production in the country within the next two years.
DEA on Tuesday announced a significant increase of production from its oil fields in the Gulf of Suez and from the Disouq gas fields in the Onshore Nile Delta.
Located offshore Egypt, DEA has a 17.25% working interest in West Nile Delta project (North Alexandria and West Mediterranean Deep Water concessions), with BP being the operator and owner of a 82.75% share. The project is located in the Mediterranean Sea off the Egyptian coast.
Production from the BP-operated offshore West Nile Delta gas fields started in March 2017 from the first two fields, Taurus and Libra. The three fields Giza, Fayoum, and Raven are currently under construction and will go into production by 2019.
The company said that the next phase of the West Nile Delta development is intended to contribute to the company’s target. Namely, DEA plans to invest about $500 million in Egypt during the coming three years.
“Egypt continues to be an important factor in DEA’s global E&P portfolio. With targeted investment in our key assets, we plan to double our production in the country within the next two years,” said Maria Moraeus Hanssen, CEO of DEA Deutsche Erdoel AG.
“We see an upside potential in the mature oil fields in the Gulf of Suez that we aim to lift. Our Disouq gas development project will be re-developed. The development of the next three fields at West Nile Delta is making good progress too. In total, DEA plans to invest another half billion US-Dollars in the coming three years into these key assets,” underlined Maria Moraeus Hanssen.
DEA is active in Egypt since 1974 and has produced more than 650 million barrels of crude oil in the Gulf of Suez during the last three decades. The production is operated by the Suez Oil Company (SUCO), DEA’s joint venture with the Egyptian General Petroleum Corporation (EGPC).
DEA and EGPC recently agreed on the concession extension of the the fields Ras Budran and Zeit Bay. The onshore gas development project Disouq comprises seven gas fields and is in production since 2013.