Shell and Apache have signed an agreement with the Egyptian Ministry of Petroleum as regards the price of gas at the Apollonia field in the Western Desert.

Under this new agreement the price of 1m thermal units will cost $4.6 instead of the initial $2.9.

The gas proven reserves in the limestone layers in Apollonia field are estimated at about 700bcf. Following 19 days of work, Apache concluded drilling of two horizontal wells in the field at a cost of $3 million each, while Shell completed the drilling of three vertical wells with the purpose of gathering the necessary information for the designing of the horizontal wells.

The two companies are currently planning to increase their exploration of gas in irregular sources as well as in their concession areas in the Western Desert.

Egypt is looking for new investments in natural gas to help ease an energy shortfall that has resulted in the decline in production at factories last summer, and to lower the bills for imported liquefied natural gas, Egypt OilandGas news reports.

Anita Fatunji