Egypt’s EGPC has a 10% stake in a southern Iraq field that is expected to produce 80 MBOPD
The Egyptian General Petroleum Corporation (EGPC) plans to start crude oil production in South Iraq’s Block 9 by the beginning of 2016, reports Daily News Egypt. EGPC has a 10% stake of Kuwait Energy in the area, the first international investment for the company.
Initial tests for crude oil production estimate that 11 MBOPD will be produced, with actual production estimates predicting 80 MBOPD. EGPC CEO Tarek El Molla said the southern Basra field’s reserves are 1,100 MMBO.
EGPC ‘s share will be exported to Egyptian refineries to meet local market needs.
El Molla said that EGPC’s expansion into Iraqi projects will help meet the company’s internationally driven strategy to produce extra income for the country. El Molla expressed optimism about the investment, saying it will help to build stronger economic relationships between Egypt and Iraq.
According to the agreement, EGPC will partner with Dragon Oil and Kuwait Energy, with the latter providing the operational work. El Molla said, “The project will be done in the zone in Basra through our companies, including Enppi, Petroject and Sun Misr.”
Sherif Ismail, Minister of Petroleum and Mineral Resources of Egypt said, “The partnership between EGPC and Kuwait Energy is a successful example of the public sector and the private sector coming together, each sector bringing in its share of knowledge, skills and strengths for the interest of the country,” in Kuwait Energy’s press release.
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