Energean has made the final investment decision (FID) on the North El Amriya and North Idku (NEA/NI) concession subsea tieback project in offshore Egypt.
The NEA concession involves two discovered and appraised gas fields including Yazzi and Python, whereas the NI concession comprises four discovered gas fields, including one of which is readied for development.
Estimated to cost around $235m, the project is planned to commence gas production in the second half of 2022.
The project is expected to have 49 million barrel of oil equivalent (Mboe) of 2P reserves, of which 87% is gas.
It will have a peak production capacity of approximately 90 million standard cubic feet of gas per day (mmscf/d) plus 1,000 barrels a day of condensates, the company said.
Energean also awarded an engineering, procurement, installation, and commissioning (EPIC) contract on the project to TechnipFMC
Energean in a press statement said: “The NEA/NI project is a key one for the Egyptian portfolio, which will provide substantial benefits to the long-term production profile in the country whilst bringing additional cost efficiencies and strategic benefits.
“When Brent prices are above $40/bbl, gas will be sold at $4.6/MMBTU, which is the highest achieved to date for shallow water gas production, offshore Egypt.”
Energean said that the drilling on NEA/NI will form part of the broader Abu Qir campaign to provide synergies on capital expenditure.
Last year, BP commenced gas production from the Qattameya field in the North Damietta concession in the East Nile Delta offshore northern Egypt.
Located in a water depth of 108m, the field is 45km west of the Ha’py platform.