Latest filings from the small-to-midsize IOCs that dominate Egypt’s onshore oil and gas sector show that, despite this year’s high international prices, production continues to fall. With high decline rates characteristic of the region, producers say that the low fixed price of $2.65/mn BTU that state firm Egas pays for gas is insufficient to spur the investment needed to maintain output.
The UAE’s Dana Gas, whose Egypt output comes from the onshore Nile Delta, says in its Q3 results that whilst the company has “identified several exploration and development opportunities in its four existing onshore concessions,” it has stalled on new investment given that “these opportunities are marginal under the current concession terms.” (CONTINUED - 1117 WORDS)
