EGYPT - Part 2 - Profiles Of The Oilfields.

Egypt's oil production has been falling steadily since the third quarter of 1995 when it peaked at 950,000 b/d. The output in recent weeks rose to about 740,000 b/d, but it is expected to fall in the coming months. It was less than 650,000 b/d in early October 2001, 818,000 b/d in early 2000 and about 834,000 b/d in early 1998. Most of Egypt's oilfields have begun to decline due to reserves depletion and a resulting fall in reservoir pressure. A boost in output by some producers this year may bring the 2002 average to about 720,000 b/d. Oil production includes condensates.

By contrast, Egypt's gas production has risen rapidly in recent years to reach almost 3,000 MCF/day now and should exceed 6,000 MCF/day by 2015 (see profiles of the gas fields & operators in Gas Market Trends).

There are more than 240 fields of various sizes in Egypt, offshore and onshore, including over 150 gas fields discovered during the past 20 years. Oil and natural gas are being produced in partnership with state-owned Egyptian General Petroleum Corp. (EGPC). Some of the small fields are run by EGPC's operating subsidiaries General Petroleum Co. and Geisum Oil Co. E&P deals have evolved since the 1950s, when ENI of Italy pioneered the concept of 50-50 partnership with Egypt and other Middle East states, and are mostly based on production-sharing agreements (PSAs).

EGPC encourages its operating partners to develop all their commercial oil and gas discoveries as quickly as possible to maximise the country's petroleum production capacity. The recovery rates of new and mature fields are raised through water and gas injection systems as well as advanced techniques. Infill drilling, continuing exploration and delineation around known fields have resulted in additional reservoirs and extensions containing oil and bigger reserves of natural gas.