Royal Dutch Shell will partner up with the American corporation Apache in the Apollonia field in the Western Desert to complete the initial tests required for gas production from limestone layers by the end of June, reported Daily News Egypt.
If the final results, reached by the two oil and gas exploration giants, are positive, several other investment opportunities will open up in the Western Desert that accommodates many limestone layers that contain natural gas. Shell and Apache have estimated that the gas reserves which can be extracted from the concession area are approximately 700bcf.
The Ministry of Petroleum declared that together, the two companies, have a plan to drill 30 wells in the Western Desert after the production and feasibility tests are successfully completed. According to Enterprise, two horizontal wells have already been successfully drilled on site, each cost $3m. The whole project is estimated to amount to $23m.
The Egyptian General Petroleum Corporation (EGPC) will pay Shell and Apache $4.6 per 1mBtu produced at the Apollonia field, instead of $2.9.
Operations are being carried out by Khalda Petroleum in cooperation with Badr El Din Petroleum Company (BAPETCO).