ALEXANDRIA: The Rashid Petroleum Company (RASHPETCO), a subsidiary of Egypt’s Oil Ministry, is intensifying its operations to cope with the government’s plan to meet the local demand on natural gas, Chairman and Managing Director Mohamed El-Masry said.
This comes in light of measures implemented with the aim of promoting gas production from all fields in collaboration with foreign partners, Masry told reporters during a tour inside Rashid and Burullus gas fields this week.
“Rashid fields’ gas production dropped to 130 million cubic feet (Mcf) per day currently, compared with 250 Mcf per day when the company started production in 2001,” Masry said, citing high prices of drilling equipments and the partial suspension of development programs over local unrest after the January 25 Revolution.
Masry further noted that RASHPETCO has received $38 million from its foreign partner BG Egypt, a subsidiary of BG Group, that were allocated to developing gas fields in Rashid and conducting the 3D seismic survey to assess the reserve in the deep water of Burullus field which is estimated initially at 5.5 trillion cubic feet.
“RASHPETCO is the biggest producer of natural gas in Egypt, providing around 22 percent of supplies,” Masry said.
The government has repaid $570 million from a total debt worth $1.9 billion to BG Egypt and PETRONAS on two installments valued at $220 million and $350 million.
The company intends to implement its regular maintenance in the Burullus fields next week from Dec. 13-15, Masry told The Cairo Post during the tour. “Gas production will fall by 150 Mcf/day to reach 750 Mfc/day until maintenance is completed.”
Masry stressed that gas production will return to normal rates starting next Tuesday to range between 900-910 Mcf/day. “Maintenance program will not harm the natural gas supplies to the national network.”