The Khalda concession currently produces about 30,000 barrels of oil per day. The goal of the development program, which involves double the amount previously budgeted, is to boost production to 45,000 barrels per day by the end of 1999, and to sustain production at that level.

The partners plan to drill 36 development wells, to recomplete 30 production wells and to conduct 24 fracture stimulations over the next 12 months. 80 new drilling sites have been identified, and a 3D seismic survey now under way is expected to reveal additional drilling locations.

The project to develop gas discovered in the Western Desert of Egypt is progressing to schedule, and upon completion of two pipeline projects expected in 1999, will begin production of 7 million cubic metres of natural gas per day, to be sold into Egypt�s national energy grid under a 10 year take or pay contract.

Repsol is the third largest company in Egypt in terms of production, with presence in the main Egyptian basins, Gulf of Suez, Western Desert, Nile Delta and Upper Egypt.