01/05/96
REPSOL DISCOVERS OIL IN EGYPT AND ALGERIA
 

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.