Royal Dutch Shell will pump investments of approximately $415m during fiscal year (FY) 2015/2016 in its areas of privilege which are managed by Badr El Din Petroleum Company (BAPETCo).
This step will be taken to implement the operations which aim to develop fields, excavate and make new discoveries, to increase the production rates of oil and natural gas.
Emad Hamdy, BAPTECo’s Chairman, told Daily News Egypt that the investments for FY 2015/2016 include three main items: $268m to implement the fields’ development projects; $97m for business and operating expenses; and $50m to dig exploratory wells, in addition to other expenses.
Hamdy added that the gas and oil production plan includes digging some development and exploratory wells. This is to compensate for the natural shortage that wells suffer so that production of the existing stations can reach its maximum power.
BAPETCo announced on Monday that the Bed3C6-1 exploratory well was successfully dug and installed in a structure south of the main bounding fault of Bed3 field to explore the HC potential of the Abu Roash G formation.
Regarding the results of the digging, Hamdy said that it recorded the highest sandstone reservoir thickness for the upper Abu Roash G formation, with around 40 metres and approximately 24% porosity.
He added that after the production test in the upper Abu Roash well, the daily production was 3,850 barrels of oil. This led to the increase of the company’s crude oil production, which exceeded the limit of 50,600 barrels per day.
He mentioned that the original oil in place for installing the well is approximately 15m barrels, which added to around 5m barrels to the oil reserves, making the total oil and gas production at 132,600 barrels.
BAPETCo seeks an increase of natural gas and crude oil production. The company aims to compensate for the natural decline in gas reserves by using new technology, such as water injection, to support the pressure of the consumed reservoirs.