Repsol
Exploraci�n has discovered a new oil field in the Khalda concession, located in
the Western Desert of Egypt. Repsol, with a 50% stake, is the operating company
for the group, Phoenix and Samsung hold 40% and 10% respectively. The title
holding company is Khalda Petroleum Company, of Egyptian nationality and jointly
owned by the contractor group and the state-owned Egyptian company
EGPC.
The appraisal well, called Salam S.E. 1, reached a depth of 3,071
metres and produced 1,855 barrels of 38� API oil per day during production
testing in the Alam El Bueib sandstone of Cretacian Age.
This well is 1
Km. from the Khalda fields central facilities, so it will be completed as an oil
producing well and will go into regular production in the near future. It is
also planned to drill new wells to sound out the extension of this discovery and
to start development on the new field, Salam S.E., as soon as
possible.
Repsol is the third largest oil company in Egypt, with a net
production of over 30,000 barrels per day, from the Khalda, Umbarka, South
Umbarka, Gulf of Suez East and Gulf of Suez West concessions. It began its
activities in Egypt back in 1972, with an exploration and production contract on
the Umbarka field in the Western Desert. Since then, Repsol has considerably
increased its interests in that country through a policy of continuous
acquisitions, buying oil-producing assets and stakes in exploration
licences.
Apart from this, and in association with the Dutch company
Orange Nassau and two Korean companies, Samsung Corporation and Hanwha Energy
Company Ltd., Repsol has discovered oil in the Issaouane block, in the Illizi
basin, in the south-east of Algeria. Here again, it acts as operator with a 55%
stake, Orange Nassau has a 15% whilst Samsung Corporation and Hanwha Energy
Company Ltd. hold 20% and 10% respectively. An appraisal well, named Tifemeni-2,
produced 1,000 barrels per day in the two tests that have been carried
out.
The Issouane block has been operated by Repsol Exploraci�n since
1991, when a production sharing contract was signed with the state-owned
Algerian company, Sonatrach. Repsol has been operating in Algeria since 1990,
when an agreement was set up between Sonatrach and a consortium of European
companies for the exploration and exploitation of the El Harcha Est and El Agreb
Ouest blocks, in which Repsol has a 25% interest. The aforementioned contract
with Sonatrach was signed after this, in 1991.
These new discoveries
strengthen Repsol's presence in Egypt and Algeria and form part of the company's
strategy to consolidate its activity in certain geographical areas such as North
of Africa, the North Sea and the Far East.
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