Egypt

ZN-BV SEREU

The South East Ras El Ush (SEREU) block is located in Egypt’s Gulf of Suez. The block has four drilled wells, two of which were used to open the West Ashrafi offshore oil field with tests of 300 and 500 m3 per day. The block contains nine prospective features for exploration drilling, two of which are close to the shore and can be drilled onshore. The block’s geological reserves and resources are estimated at 8.2 million tons.

On December 24, 2019, Zarubezhneft, the Egyptian Ministry of Oil and Mineral Resources, the Egyptian state holding company GANOPE, and Pacific Oil Limited signed the Production Sharing Concession Agreement for the SEREU block in Cairo. The agreement stipulates that the exploration period is four years with a renewal option for two years. In the event of a commercial oil discovery, the development period will be 20 years, with a renewal option for five years.

Minimum obligations under the concession agreement (until December 24, 2023):

  • Re-processing of 3D seismic data over an area of 68 km2 and 2D seismic data over an area of 240 km
  • Integrated interpretation of geology and geophysics
  • 3D modeling of the West Ashrafi field
  • Drilling of three wells as part of GEW from the shore to the Nubia formation
ZN-BV SEREU
Ownership structure, %

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Development prospects

The work program for 2021 includes the drilling of the SEREU-1X exploration well as well as the re-processing and complex reinterpretation of previous 2D and 3D seismic surveys. The work program for 2021–2025 includes the onshore drilling of two exploration wells with the further drilling of six production wells as well as field development. If the GEW is successful, the planned start-up date is 2022, with the maximum production level to be reached in 2025.

EGZ

The East Gabel El Zeit (EGZ) block is located in Egypt’s Gulf of Suez. The block has two drilled wells. The EGZ-1XST well opened the North Ras El Ush oil field with an oil inflow of 77 m3 per day. The underlying layers of the field are believed to have oil deposits as well as a separate GEW structure ADAM. In total, there are 19 promising deposits in eight blocks. All the block’s structures are located close to the shore and can be drilled from onshore. The block has geological reserves and resources are estimated at 6.8 million tons.

GANOPE and VEGA Petroleum Limited signed the EGZ Block concession on August 21, 2014. Per the concession agreement, the exploration period is three years with a renewal option for three years. In the event of a commercial oil discovery, the development period will be 20 years, with a renewal option for five years. In December 2019, Zarubezhneft, the Egyptian Ministry of Oil and Mineral Resources, the Egyptian state holding oil company GANOPE, and VEGA Petroleum Limited completed a deal in Cairo to include Zarubezhneft in the EGZ project.

Minimum obligations under the concession agreement:

  • GEW at the block — 3D seismics over an area of 50 km2 and the drilling of one well to the Nubia horizon, or 1,500 meters TVDSS
  • At the production block — commissioning of the field
EGZ
Ownership structure, %
Ownership structure, %
Development prospects

In 2020, work was completed to prepare for drilling; in July, work began on the drilling of the first exploration well ADAM-B-1X. In October 2020, drilling was suspended due to a new drilling contractor. Work resumed in February 2021.

The work program for 2021 envisages the completion of drilling and development of the ADAM-B-1X exploration well, interpretation of the Enhanced Full Tensor Gravity Gradiometry (EFTG) and magnetic survey data performed in 2020, and the comprehensive re-processing and reinterpretation of seismic data. The work program for 2021–2025 provides for the drilling of four exploration wells and the development of fields. If GEW is successful, the planned start-up date is 2022, with the maximum production level to be reached in 2024.