R/€ = 14.35
R/$ = 11.16
Au 1223.59 $/oz
Pt 1337.00 $/oz
May 07, 2002
Positive outlook for oil offshore EgyptBack
Houston|Apache Corporation|BP|Exploration|Farris|Gas|Repsol YPF|Reuters|Water|Egypt|Germany|Spain|Hottest Gas Plays|Natural Gas|Oil And Gas|Oil And Gas Producer|Oil Giant|Productive Natural Gas Deposits|Gulf Of Mexico|Raymond Plank|Steven Farris|Water|Gulf Of Mexico
© 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)
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...