CAIRO: Minister of Petroleum Sherif Ismail discussed projects to develop and link 8 fields located in the deep water of the Mediterranean in Western Delta with the current fields in order to increase production with the Chairman of British Gas in Egypt Atshad Sofi, according to a Tuesday statement.
The total investment cost of the project is valued at $1.6 billion, with average production expected to reach 450 million cubic feet per day. Production of this project is scheduled to come into effect as for the 3rd quarter of2014, according to the statement.
Egypt currently suffers from a significant shortage of diesel fuel, particularly given the economic strain from the rise in global fuel prices and the lack of financial resources required for import. Each ton of fuel carries a government subsidy of 3,000 EGP ($ 447,) a heavy burden on the state budget.
The petroleum sector is looking to raise oil and gas production in Egypt since gas production dropped to 147.2 million cubic meters per day early this year, compared to 152.9 million cubic meters per day last November.
The total production of crude oil and natural condensate is 700,000 barrels per day, according to the Egyptian General Petroleum Corporation.
Originally published in Youm7.