EGYPT - The Western Desert Oil Fields & Operators.

The Western Desert (WD), a gas-rich area of about 450,000 sq km, has become the second biggest oil producing part of Egypt next to the Gulf of Suez (GoS). Its output in 2003 rosen to about 281,500 b/d of oil and condensates, up from 210,000 b/d in early 2000 and 117,500 b/d in late 1995. But it has since fallen to less than 210,000 b/d. WD production of natural gas has risen considerably in recent years (see gas output part of this survey on following pages).

Khalda Petroleum Co. (KPC), a JV of EGPC (50%) and independent operator Apache Corp. of Texas (50%), produces 45,000 b/d of 35-46[degrees]API oils (up from 30,000 b/d in early 1998) and 12,000 b/d of condensates as well as more than 300 MCF/day of natural gas (up from 200 MCF/day in early 2004). Its fields have been expanded through a $100m development plan completed in early 2000 which including drilling of 36 new wells and completion of 30 others. Its fields include Khalda (found in 1982 at 2,570 ft), Salam (1984, with extensions found in 1994/95), Hayat, Safir and Tut (1986), West Tut (1988), Yasser, Aoun and Tareq (1987/88), Kahraman (1991), Shuruq and Shuruq East. Apache, which bought the 20% of Phoenix of the US and raised its KPC equity in February 2001 when it bought almost all of Repsol/YPF's Egypt assets including its 25% in Khalda, has several other fields found by Repsol in recent years. They are all tied to the Salam production system which is linked to the Meleiha-el-Hamra export pipeline. Apache also operates the Umbaraka and South Umbaraka fields, among various other assets in the WD (see Wepco overleaf).

Qasr has been the biggest oil and natural gas discovery in Apache's history. This lies in the Khalda region, in the north-west of the WD, where Apache has made a number of gas discoveries and most of the gas/condensate finds have flowed from Ras Qattara and Khatatba Fms. Khalda - including the 6-8 TCF Qasr field - has important oilfields which, together with fields in other blocks, have made Apache the biggest oil producer in the WD (see Egypt's geological profile in gmt1EgyptGeoJan2-05).

Apache on April 5, 2005 announced two major natural gas finds in Egypt, one onshore on the Mediterranean coast and another in the WD close to Qasr. The Syrah find in the WD was described as one of region's largest, with "estimated reserves of 2 TCF of gas and 45m barrels of condensate". Syrah 1X on Apache's 100% Khalda block is close to but separate and down-dip from the large Qasr Jurassic oil and gas field. Test drilling at Syrah 1X resulted in 46.5 MCF/d of gas. Apache said: "Delineation of the structure will take additional wells, but seismically, the Syrah field is potentially at least one-quarter the size of Qasr. That would rank the new-field discovery the third-largest Jurassic gas...found to date in the Western Desert".

Apache said it planned to produce Syrah's gas through its Qasr production facility starting in mid-2005, adding to the its WD gross production of 300 MCF/d of gas. It added: "Apache has contracts that will more than double" its WD output to 637 MCF/d of gas "as additional processing capacity comes on line over the next several years". It was said later in 2005 that, judging by the pace of its gas finds, Apache could eventually become one of the top four gas producers in Egypt and among LNG exporters.

Apache's April 5 announcement of a second discovery involved Tanzanite 1X onshore on its West Mediterranean block, where this tested 5,296 b/d of oil and 7.4 MCF/d of gas. Tanzanite 1X was to be connected to the North Alamein processing facilities. Apache said: "Production will commence upon approval of a development lease" by EGPC. The well was also to test and produce overlying reservoirs at the same location. Apache has a 65% contractor interest in the West Mediterranean play (which means 32.5% in an eventual JV with EGPC as the latter will hold 50%), while the Germany RWE Dea has the remainder.

Agiba Petroleum Co. (Agypetco), a 50-50 WD venture between EGPC and Agip's IEOC, produces about 35,000 b/d of crude oils from its Meleiha and West Razzaq blocks, compared to 50,000 b/d in late 2003, 49,200 b/d from mid-1998 to mid-1999, and 30,000 b/d in late 1995. (See IEOC's Petrobel operations in OMT). Output comes from its Meleiha fields (found in 1972 with 31.6[degrees] API oil), Ighar (1987), Falak (1988), West Razzaq (1994) and others.

In February 1997, IEOC began producing 3,800 b/d from its first oil well in the WD's Qattara depression, where the field's reserves were then estimated at 4m bls. The surface system of the field, Ras Qattara, is 80 metres below sea level. Several other companies are also exploring in the Qattara area. A number of other finds made by IEOC are linked to a central production system. This is tied to a 167 km pipeline to el-Hamra terminal on the Mediterranean which went on stream in mid-1986 at 90,000 b/d and was later expanded to 140,000 b/d.

Qarun Petroleum Co. is a JV of EGPC (50%), operator Apache (37.5% bought in 1996 from Phoenix) and Seagull Energy (12.5% bought from Global Natural Resources). The JV, set up in August 1995, has developed the Qarun field in Upper Egypt to a capacity of more than 60,000 b/d of light oil. But its output has since the late 1990s fallen to 30,000 b/d.

Qarun field, found in 1994, and its extensions lie in Central Egypt on the edge of the Western Desert near a point where the Sumed crude oil pipeline passes towards the Mediterranean terminal of Sidi Kerir. Seagull, operator in the East Beni Suef block just south of Qarun, has found a field there (see OMT).

GUPCO (EGPC/BP), the main oil producer in the Gulf of Suez (see OMT), has four fields in the Western Desert: Abu al-Gharadiq (1982), Razzaq (1972), WD-33-15 (1972) and WD-99 (1975). They produce 15,000 b/d of 35-55[degrees] oils, down from 20,000 b/d in late 2003, and more than 22,000 b/d in late 1995.

In 1986 Amoco (acquired by BP in 1999) completed development of its small North and North-East Abu al-Gharadiq structures, including a gas production stream, which later helped maintain total oil output at 20,000 b/d. But reservoir pressure fell in the subsequent years. The crude is sent in a two-phase stream to the Abu al-Gharadiq oil processing plant.

Badreddin Petroleum Co. (Bapetco), EGPC/Shell, produces 12,000 b/d of 38[degrees] oil (14,000 b/d in early 2000 & 22,000 b/d in 1995), from Badreddin (1982), BED-2 (1988) and other fields. Shell also produces 15,000 b/d of condensates from these fields.

Shell is the biggest producer of natural gas in the WD (see following pages).

Western Desert Petroleum (WEPCO), EGPC/Apache (50 acquired in early 2001 from Repsol which had bought this equity from Phillips of the US in 1998), was the first in the region to find oil at Alamein in 1966 and gas at Abu Qir. WEPCO produces 44[degrees] oil from Alamein, Yidma (1972), Umbaraka (1976) and the latter's extensions. But its output has declined to less than 1,500 b/d, from 5,000 b/d in early 1998 and 6,000 b/d in 1995.

In 1989, Apache found an offshore field in West Abu Qir, off Alexandria. The well tested and 1,500 b/d of 41[degrees] oil, 300 b/d of condensate and 12.5 MCF/d of gas from an Abu Madi Fm.

Oasis Petroleum (OAPCO), a JV of EGPC and the private Egyptian firm Forum Petroleum, produces less than 1,000 b/d from the West Qarun and West Gabel el-Zeit fields, compared to 1,600 b/d in 1998.

Burg el-Arab Petroleum, a JV of EGPC and the private Egyptian firm Kriti Oil & Gas, produces very little oil from the small Burg el Arab and Horus fields. In 1996, Gharib Oil Fields Co. acquired 80% of Kriti.

There are a number of other small oil producers in the WD.