NEA/NI project : Energean reaches FID on $235m offshore gas project in Egypt

Energean has reached a final investment decision (FID) on the North El Amriya and North Idku (NEA/NI project), a $235 million subsea tieback project located offshore Egypt.

The North El Amriya block contains a couple of discovered and appraised gas fields, namely Yazzi and Python. The North Idku block, on the other hand, contains four discovered gas fields, of which, one of them is being readied by Energean for development.

Energean is initially looking to develop the Yazzi and Python gas fields. The London-based company is targeting first gas from the NEA/NI project in the second half of next year.

The company will develop the gas assets as satellite fields to the Abu Qir gas-condensate offshore and onshore infrastructure.

TechnipFMC has been awarded a contract by the company for delivering the engineering, procurement, construction, and installation services for the North El Amriya and North Idku subsea tieback project.

NEA/NI project : Energean reaches FID on $235m offshore gas project in Egypt. Image courtesy of Energean plc.

Under the development concept of the NEA/NI project, Energean will drill three subsea wells in water depths ranging between 30 meters and 85 meters. The subsea wells will have a tieback to the North Abu Qir III platform.

A fourth well will be drilled by Energean for the development of the NI-1 discovery contained in the North Idku block.

The oil and gas company intends to install the infrastructure parallelly with the North El Amriya development so that the NI-1 well is hooked up with it simultaneously or at a later time.

Energean is also looking to integrate the drilling program related to the NEA/NI project with a broader drilling operation at the Abu Qir concession in order to realize synergies on capital expenditure.

The NEA/NI project has 49 million barrels of oil equivalent (boe) in 2P reserves. Of this, 87% makes up gas while the remaining is condensate.

According to Energean, peak production from the NEA/NI gas project is estimated to be around 90mmscf/d of gas and condensate of 1kbopd.

Energean, in a statement, said: “The NEA/NI project is a key one for the Egyptian portfolio which will provide substantial benefits to the long-term production profile in the country, whilst bringing additional cost efficiencies and strategic benefits.

“When Brent prices are above $40/bbl, gas will be sold at $4.6/mmBTU, which is the highest achieved to date for shallow water gas production, offshore Egypt.”