Apache Corp. and Shell has revealed plans to commence the production of unconventional gas from Egypt’s Northeast Abu Gharadig licensing area by the end of June just as Apache is reducing investment in the country due to the declining oil prices in the global market.

Apache’s Egyptian Vice President and General Manager, Thomas Maher, said that the partners are to begin the drilling of Egypt’s first unconventional gas well in a pilot project by March ending. They are to drill two more wells prior to discussions with the government regarding the full development of the field by horizontal drilling and fracking.

Shell is the operator of the pilot project with 52% interest while Apache owns the remaining 48%. The operation is situated in Egypt’s Northeast Abu Gharadig licensing area, where Apache and Shell jointly have a 50 % interest while the Egyptian General Petroleum Corp. (EGPC) holds the rest.

According to Bloomberg, Egypt is looking for new investments in natural gas in order to ease the energy shortage as well as to reduce bills being paid for imported liquefied natural gas (LNG).

Anita Fatunji