Egypt explores hydraulic fracturing to unlock up to 100,000 B/D in oil production
Egypt is exploring wider use of hydraulic fracturing and horizontal drilling to develop unconventional oil resources in the Western Desert, with a preliminary study estimating that the technologies could add up to 100,000 barrels per day.
The study was presented by oilfield services company NESR during a visit by Petroleum and Mineral Resources Minister Karim Badawi on Wednesday to follow up on hydraulic fracturing operations at the Al Obayied H-18 well in the Western Desert, the ministry said.
The ministry has launched an integrated initiative, in cooperation with investment partners and international oilfield services and technology companies, to expand the application of these technologies as part of the petroleum sector’s five-year plan.
The initiative aims to improve the productivity of existing wells, revive declining ones, and unlock reservoirs that were previously uneconomical to develop using conventional methods.
Badawi highlighted the successful application of hydraulic fracturing and horizontal drilling in countries including the United States and Saudi Arabia, as well as their results in Egypt, particularly in the Western Desert.
He said the ministry was working with the Egyptian General Petroleum Corporation (EGPC) and international companies to develop viable economic models and investment incentives to encourage wider adoption of the technologies.
Gas production at Al Obayied well
At the Al Obayied H-18 well, operated by BADR Petroleum Co. (BAPETCO), multi-stage hydraulic fracturing operations aim to quadruple gas production to approximately 12 million cubic feet per day (MMcf/d), from around 3 MMcf/d currently.
The operations form part of efforts to enhance the productivity of existing wells through advanced extraction technologies.
NESR’s preliminary study also assessed the potential for expanding hydraulic fracturing to develop unconventional oil resources in the Western Desert, estimating that this could add between 50,000 and 100,000 b/d to Egypt’s oil production.
The company has operations in 15 countries and experience in developing unconventional gas resources, including at Saudi Arabia’s Jafurah gas field.
Investment and contractual frameworks
The ministry has developed contractual and financial frameworks to attract investment and encourage the adoption of hydraulic fracturing and horizontal drilling.
These include performance-based contracts, integrated service agreements, and lump-sum turnkey (LSTK) contracts, which the ministry aims to use to improve spending efficiency and shorten project implementation timelines.
Subediting: Y.Yasser