CAIRO: Khalda Petroleum Company is seeking its first attempt to extract the shale gas of the Amon field in Western desert region and allocated $1.2 billion over the 2014-15 budget to finish and find new excavations, head of Khaleda company Taher Abdel Rahim told Amwal Al-Ghad Sunday.
The company is a joint venture between the Egyptian General Petroleum Corporation (EGPC) and the U.S. Apache Corporation.
“Allocating such sums is within the company’s strategy to promote its investments in new fields, exploit large quantities of shale gas reserves, help overcome the energy crisis, and boost Egypt’s production of shale gas,” he added.
Over the past few months, Khaleda Company succeeded in raising its production rates to 145,000 barrels of crude oil and 900 million feet of gas daily through the new excavation in Eastern and Western Desert, Abdel Rahim said. The company hit the equivalent of 115 million barrels oil’s annual rate during the 2013-14 fiscal year.
In its developmental plan for 2014-15 fiscal year, the company worked on increasing its production to 940 million feet of gas and 148,000 barrels of crude oil, he said. The government will boost its investment in the shale gas field to hit this level of production.
In March 2014, Minister of Petroleum Sherif Ismail announced that Egypt’s reserves of shale gas increased to 500 trillion cubic feet, according to the U.S. Energy Information Administration. One trillion cubic feet is easy to extract while the others need more complex research, Al-Bawaba News reported.
The Ministry of Petroleum will address shale gas fields in the upcoming period by offering public and international tenders for excavation and prospection to help Egypt overcome its current energy crisis, boost its petroleum revenues, and meet the citizens’ growing needs.
Egypt’s daily consumption of oil products, including natural and liquefied gas, increased to 2.1 million barrels this year, Ismail told Al-Masry Al-Youm on July 12. Egypt’s petroleum production will increase to 480 billion cubic feet, along with 680,000 barrels of liquefied gas, daily.