Italian firm Eni says it has added 10,000 b/d of oil output from its Meleiha concession in Egypt’s Western Desert. It is a timely boost for Egypt’s oil output which fell to a 40-year low 579,000 b/d for October with Western Desert output falling to 300,000 b/d the lowest since mid-2010 (see chart 1).
Apache is the key Western Desert producer. But, amid swingeing capex cuts, the US independent’s gross Egypt output fell to an 11-year low 161,100 b/d for Q3 (MEES, 6 November).
Eni may make more headlines in Egypt for its leading role in offshore gas, but it is also the Western Desert’s number two oil producer. The Italian firm’s net Egypt oil output (mostly from the Western Desert) fell to a multi-decade low of 58,000 b/d for Q2 (see chart 2). But it rebounded to 64,000 b/d for Q3.
These gains appear to have come from the ramp-up of output from recently-discovered deep formations on its Meleiha concessions (MEES, 26 July 2019), and output appears to have continued to grow. A 23 December Eni announcement flags up a recent discovery well on the Arcadia South structure which hit a 26-meter oil column and flowed at 5,500 b/d. Two development wells have subsequently been drilled and are now producing a combined 10,000 b/d, Eni says.
Eni operates Meleiha and holds a 38% with Russia’s Lukoil holding 12% and Egypt’s state oil firm EGPC the remaining 50%.
