Last Update 12:26
Wednesday, 16 October 2019

Egypt signs first gas fracking contract with Apache, Shell

Texas-based Apache Corp and Shell Egypt to invest up to $40 million in three horizontal wells and 'fracking' in Western Desert

Deya Abaza , Wednesday 17 Dec 2014
Egypt has become a net importer of natural gas in recent years as rising domestic consumption (Photo: Reuters)
Views: 3718
Views: 3718

Egypt signed its first contract with foreign oil firms to extract gas using fracking, the same technique used in producing shale gas, a move that could unlock large reserves of  energy.

Texas-based Apache Corp and Shell Egypt will drill three horizontal wells in the Abu El-Gharadiq region of the country's Western Desert with investments of up to $40 million, said the Petroleum Ministry in a statement on Wednesday.

The pilot project, as described by ministry spokesman Hamdi Abdel-Aziz, will involve the use of hydraulic fracturing, or "fracking", to retrieve the unconventional gas, embedded in underground rock formations.

Egypt's technically recoverable reserves of unconventional gas are estimated at 100 trillion cubic feet (tcf), according to a 2013 report by the U.S. Energy Information Administration, higher than its reserves of conventional natural gas, which stand at 77 tcf.

Egypt has become a net importer of natural gas in recent years as rising domestic consumption, particularly by the electricity sector, and dwindling exploration have created a shortage in the local market.

Though the costs of extracting unconventional gas are higher than those of producing conventional natural gas, it is still less costly than importing liquefied natural gas (LNG), as the government plans to do starting in 2015, industry insiders told Ahram Online.

"The cost of liquefaction, transport, insurance, regasification and general logistics associated with importing LNG mean that it would cost us some $14 per million BTUs (British Thermal Units)," says former Petroleum Minister Osama Kamal, "whereas producing unconventional gas here would cost $4-5 per million BTUs."

Shale oil and gas has in recent years experienced a boom, notably in the United States, thanks to the development of new technologies.

Egypt's government has been reviewing gas prices for foreign oil firms, including Apache and Shell, to encourage them to step up exploration and production.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

19-12-2014 06:29pm
Fracking poison ground water and earth
Fracking means to pump water and dangerous chemicals deep into the earth to press out the gas. Later the chemicals and water is inside the earth and later come back to surface poison drinking water, earth of agriculture and the hole ground, air. Maybe shortterm you get gas , make money ( Money go to US or military not people) but in some years the people live here will slowly be poisined and get ill and die. So like Europe stop fracking dont allow US to destroy our future land of our children !
Comment's Title

17-12-2014 07:51pm
One of the places Apache is going to spend as an alternative to Canada. Dad
Comment's Title

© 2010 Ahram Online.