R/€ = 13.14
R/$ = 12.05
Au 1200.03 $/oz
Pt 1139.50 $/oz
May 07, 2002
Positive outlook for oil offshore EgyptBack
Exploration|Water|Oil And Gas|Water
© Reuse this Independent oil and gas producer Apache Corporation said it had completed its first deepwater well offshore Egypt and will test for potentially productive natural gas deposits in the coming weeks.
The Houston-based company issued a cautiously worded statement about the well in its West Mediterranean concession, saying it was encouraged by the wireline logs from the well but would make no further comment until it completed the tests.
Steven Farris, who will succeed Apache founder Raymond Plank as chief executive later this month, was somewhat less cautious in remarks made at the company's annual meeting on Thursday.
“It appears that our first foray into deepwater has been successful,” Farris, the company’s president and chief operating officer, told shareholders.
Farris referred to the Abu Sir well, 42 miles from shore in 3 255 feet of water, as ‘potentially a significant discovery’ and said partners RWE-DEA of Germany and oil giant BP were also very excited.
Apache is the operator with a 55% contractor interest. RWE-DEA has a 28,3% stake and BP has 16,7%.
In its statement Apache said the West Mediterranean block has the greatest exploration potential in the company’s history.
Farris said some 55-trillion cubic feet of natural gas have been found in Egypt’s Nile delta region in recent years, making it one of the world’s hottest gas plays.
Apache is a big player in the shallow waters of the Gulf of Mexico, but has held back from venturing into the oil-rich deepwater Gulf of Mexico, because of the high costs involved and the competitive advantage held by earlier entrants.
Farris said Apache had chosen to drill its first deepwater well offshore Egypt rather than the Gulf of Mexico because of the lower costs.
The Abu Sir well was drilled to a depth of 7 530 feet at a cost of $13-million but had the same reserve potential as a much deeper well in the Gulf costing $80-million, he said.
Apache has been active in Egypt since 1994 and boosted its production there with a $410-million January 2001 deal to buy oil and gas interests there from Spain’s Repsol YPF.
The company’s natural gas production in Egypt rose to 117,5 million cubic feet per day in the first quarter of 2002 from 54,4 million a year earlier while its oil production in Egypt rose to 44 378 barrels from 25 970 barrels.
Apache said Farris has been elected to succeed company founder Raymond Plank as CEO on May 29 when Plank turns 80. Farris will retain the titles of president and chief operating officer and Plank will remain Apache’s chairperson. – Reuters © Reuse this Comment Guidelines (150 word limit)
Other Oil Refineries News
Aerosud programme aimed at empowering lower-paid employees To quality as a broad-based black economic empowered (BBBEE) company in terms of the BBBEE Amendment Act, 2013, Aerosud is placing the focus on putting suitable mechanisms in place to enable its lower-paid...
A weeklong conference, aimed at uniting and networking between major role-players in the global oil industry, will run from November 3 to 7 at the Cape Town International Convention Centre.
Updated 1 hour 27 minutes ago Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Updated 2 hours 17 minutes ago French energy company Total is seeking international arbitration over a tax disagreement with Uganda which could further delay crude oil production in the east African country. "Total E&P Uganda confirms that it has filed a request for arbitration before the...
Updated 2 hours 21 minutes ago The Independent Communications Authority of South Africa (Icasa) on Tuesday published the final Radio Frequency Spectrum Assignment Plan (RFSAP) for the International Mobile Telephony (IMT) Roadmap that was gazetted in November. The IMT Roadmap aimed to unlock the...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...