Ahmed Kamel – Egypt Daily News
In a significant milestone for Egypt’s natural gas sector, North Sinai Petroleum Company has announced the addition of 28 billion cubic feet of confirmed natural gas reserves from its offshore fields in the Mediterranean, particularly in the North Sinai concession. The announcement came during the company’s general assembly, where executives from the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and partner firm Perenco Resources Egypt Ltd. reviewed the company’s achievements and strategic outlook.
The development marks a critical step forward in Egypt’s strategy to boost natural gas production amid growing domestic demand and evolving regional energy dynamics.
Strategic Integration Amid Production Challenges
During the meeting, Eng. Salah Abdel Karim, CEO of EGPC, emphasized the importance of integrated operations between the state, partners, and subsidiaries. He highlighted EGPC’s full support for North Sinai Petroleum’s efforts to increase output, especially through projects aimed at enhancing workplace safety and environmental sustainability.
One such initiative includes the expansion of firefighting systems and the upgrading of the water treatment plant projects that require not only technical precision but also strong collaboration among all stakeholders, including the Ministry of Petroleum, EGAS, and partner companies.
Abdel Karim praised the efforts of joint teams across departments—ranging from production and exploration to legal and project planning—whose synergy has enabled the company to navigate substantial operational challenges over the past fiscal year.
Fast-Tracking Phase Four of Development
Eng. Mahmoud Abdel Hamid, Chairman of EGAS, noted that the company’s recent performance serves as a strong incentive to expedite the execution of the fourth development phase. He stressed that the knowledge and experience of the partner companies, combined with the institutional backing from both EGPC and EGAS, make the acceleration of this phase not only feasible but essential.
Perenco, the foreign partner in the North Sinai fields, has been pivotal in sustaining production rates—currently averaging around 56 million cubic feet per day. Eng. Hanfy El-Sayed, Managing Director at Perenco, explained that the company now operates six offshore platforms, including one mobile unit, all of which are connected via 43 kilometers of subsea pipelines.
Preparing for the Fifth Development Phase
Eng. Raafat El-Beltagy, General Manager at Perenco, announced that preparations for a potential fifth development phase are underway, concurrent with the implementation of phase four. He emphasized the importance of continued support from the state and praised the collaborative efforts that helped overcome geological, legal, and production-related obstacles. He also noted the significance of the newly awarded onshore concession Fayrouz as a promising area for future growth.
Exploration Success and Operational Excellence
North Sinai Petroleum CEO Eng. Mohamed El-Doghidi presented a comprehensive report outlining the company’s achievements over the past year. Most notably, the company drilled the ATON-1 exploratory well, which alone added 16 billion cubic feet of gas to the company’s confirmed reserves. An additional 12 billion cubic feet were added through enhanced recovery techniques in the South Qamus fields and through updates to existing fields such as KSE2, KNW1, and TAO SW.
The company also updated the geological maps of the ATON field following the analysis of the new well’s data, part of its broader strategy to optimize reserve estimates and recovery rates.
North Sinai Petroleum reported an excellent safety record, logging 18,000 accident-free working hours over the year. This accomplishment was noted as a key component of the company’s commitment to operational integrity and sustainability.
Social Responsibility and Digital Transformation
In addition to its technical achievements, the company continues to invest in digital transformation and community development. One standout initiative is a collaboration with the Fayrouz Association through the “Sinai Creativity” project. This program aims to equip 40 young men and women with skills in carpentry, upholstery, and curtain design offering comprehensive training that blends technical expertise with life skills tailored for the local job market.
Focus on Flaring Reduction and Safety Systems
Eng. Ihab Ragab, Deputy Minister of Petroleum for Production Affairs, stressed the need to maintain high safety standards and ensure efficient management of operations. He specifically called for accelerated efforts in the utilization of flare gas and the timely execution of upcoming production phases.
Outlook
The addition of 28 billion cubic feet to Egypt’s gas reserves is a testament to the collaborative and forward-thinking approach adopted by the Ministry of Petroleum, state-owned entities, and international partners. As Egypt continues to position itself as a regional energy hub, developments like those in North Sinai will play a vital role in securing energy stability, attracting investment, and driving technological advancement in the sector.
With momentum building and new phases of development on the horizon, North Sinai Petroleum is poised to remain a cornerstone of Egypt’s natural gas success story.
