15% cut in oil, gas pro­duc­tion costs in Egypt

Work pro­gramme de­vel­oped with com­pa­nies to in­crease re­liance on do­mes­tic pro­duc­tion: source

The Daily News Egypt - - News - By Mo­hamed Adel

The Min­istry of Pe­tro­leum suc­ceeded in cut­ting the cost of pro­duc­ing oil and gas by 15%, which saves sub­stan­tial funds and in­creases pro­duc­tion.

A source at the Min­istry of Pe­tro­leum and Min­eral Re­sources told Daily News Egypt that a pro­gramme was de­vel­oped to cut pro­duc­tion costs through in­creas­ing re­liance on lo­cal prod­ucts and com­pa­nies in im­ple­ment­ing con­sult­ing, con­struc­tions, pipe­lines, and re­finer­ies.

The source pointed out that the min­istry started im­ple­ment­ing th­ese steps since the be­gin­ning of last year, which con­trib­uted to the suc­cess of com­pa­nies in ra­tio­nal­is­ing ex­pen­di­tures down by 20% in some com­pa­nies.

He added that the re­duc­tion of pro­duc­tion costs con­trib­uted to saving funds for the state, as the funds re­turned to for­eign part­ners from re­duced pro­duc­tion, based on each sep­a­rate con­ces­sion area agree­ment.

Fur­ther­more, the source elab­o­rated that the min­istry is con­duct­ing meet­ings with the pro­gramme team in or­der to im­prove the per­for­mance of pro­duc­tion ac­tiv­i­ties, which aims to max­imise and in­crease Egypt’s pro­duc­tion of crude oil and nat­u­ral gas, by iden­ti­fy­ing op­por­tu­ni­ties to in­crease pro­duc­tion from ex­ist­ing fields.

Over and above, the source con­tin­ued by ex­plain­ing that the daily in­crease in the pro­duc­tiv­ity of crude oil fields was about 31,000 of crude oil, 9,000 bar­rels of con­den­sates, 1,500m cu­bic feet of gas, in ad­di­tion to off­set­ting the nat­u­ral pres­sure de­cline with 100,000 oil bar­rels.

The work pro­grammes im­ple­mented by the pro­duc­tion com­pa­nies in­di­cated the suc­cess of the Khalda Pe­tro­leum Com­pany, in the pro­duc­tion of crude oil from the lime­stone lay­ers at Apol­lo­nia field in the West­ern Desert, through re-as­sess­ing the old records across sev­eral fields, and dis­cov­er­ing oil lay­ers that add 700 crude oil per day com­pared to tra­di­tional means.

The re­duc­tion of pro­duc­tion costs con­trib­uted to saving funds for the state

Newspapers in English

Newspapers from Egypt

© PressReader. All rights reserved.