Cairo – Mubasher: Italy’s oil giant Eni is negotiating Netherlands-based Shell to link up around 23 million cubic feet of natural gas per day from the new Farameet well at its Egypt’s Western Desert concession to the Obayied gas-treatment plant.
The well will be closed until the deal with Shell, the owner of Obayied plant, is completed, in addition to constructing a gas pipeline between the well and the processing plant, Alborsa News reported, citing a source at the state-run Egyptian Natural Gas Holding Company (EGAS).
The source added that around $6 million had been spent to drill the Farameet well, pointing out that studies mostly inclined to the possibility of crude oil production from the well, however, the Dutch firm found out no signs of oil reserves during the beginning of drilling activities, but only exploring natural gas formations.
Production capacity at the Obayied gas treatment plant is estimated at 450 million cubic feet of gas per day, of which around 400 million feet are utilised. It has a capacity that could be used to produce the gas of the Farameet well.
The Farameet well is located within Eni’s concession area, operated by Agiba Petroleum, a joint venture between the Italian oil giant and the Egyptian General Petroleum Corporation (EGPC).