US firm Apache has been talking up a return to oil output growth in Egypt since signing-up to improved contractual terms with Cairo in late December (MEES, 7 January), and that talk is now bearing fruit as the firm posted a 7,000 b/d quarter on quarter increase for Q2. While output was up marginally for Q1 to 135,100 b/d, Q2 output from the firm’s Western Desert acreage jumped 5% to 141,900 b/d (see chart 1), giving Apache its “first material quarterly increase in Egypt oil production since 2018,” CEO John Christmann told investors on 4 August. Apache accounts for 25% of Egypt’s overall oil output.
The firm’s gas output, however, was down again. Gas saw a 7% fall versus Q1 to a new 13-year low of 556mn cfd, the result of Apache’s “oil focused… current rig program.” Whilst Apache can sell its oil output at international prices – achieving an average of $111.98/B for Q2 – it receives a low fixed price of just $2.65/mn BTU for its Egypt gas output. (CONTINUED - 1042 WORDS)
