Egypt

Following a successful exploration campaign in joint venture with BG, Edison became one of the major gas players in the country with the development of the first LNG train of Idku in 2001. In 2002, Edison decided to reduce its exposure in Egypt and sold to Petronas its integrated E&P and LNG activity. In 2009, Edison reconsolidated its position in the gas sector by acquiring the Abu Qir concession and added additional new exploration licenses investing to date (since 2009) close to $3B. The current portfolio includes 9 concessions, of which 6 are operated by Edison, deploying almost 1000 people directly and through its joint ventures. Edison owns 3 production leases and 6 exploration licenses distributed in all the proven petroleum provinces in Egypt (i.e. Nile Delta, East Mediterranean offshore, Western Desert and Gulf of Suez). With 3 operated exploration blocks in East Mediterranean, Edison has consolidated its dominant position in this new exploration area with a world-class gas potential confirmed by the recently announced giant gas discovery of Zohr (30TCF) in Egypt and the other field previously discovered in adjacent areas in Israel and Cyprus waters (Tamar, 10 TCF; Leviathan, 22 TCF; Aphrodite 4.5 TCF). Seismic activities on these EGYPT, AN INTEGRATED BUSINESS MODEL blocks have been completed with the aim to evaluate the potential and plan future drilling activities. Edison’s knowledge and position in the area is also sustained by the participation and operatorship of one exploration block in Israeli waters. It is worth mentioning that in 2000 Edison, in joint venture with Bechtel, participated in the development of the first gas-fired IPP of Egypt (Sidi Krir 2x340 MW BOOT), which was then sold in 2002. Today, Edison is working with a local partner to develop a 200MW combined cycle power plant in vicinity to its Abu Qir onshore receiving gas terminal. This plant is leveraging Edison’s expertise as well as the ongoing liberalization of Egypt’s electricity and gas sectors. Once completed, this will be the first merchant power plant in Egypt.

Abu Qir - Egypt
Rosetta - Egypt

Production of Hydrocarbons

Edison holds a 100% operated participating interest in the Abu Qir concession in the Nile Delta offshore. It also has a 20% participating interest in the Rosetta offshore production license. Edison also operates with a 60% working interest in the West Wadi El Rayan concession.

  • Abu Qir Concession

    The Abu Qir concession consists of 3 gas and condensate fields (Abu Qir, North Abu Qir, West Abu Qir) located offshore in the Nile Delta in water depth ranging from 14 to 35 meters. The concession, located offshore in the Idku Bay, 20 km East of Alexandria, was acquired by Edison in 2009 following an international tender for 1.4 billion USD. Since 2009, Edison has doubled hydrocarbon production in the area, thanks to an aggressive investment plan. The last of these investments is the North Abu Qir Platform three that is expected to come on stream in Q2 2017.

  • Rosetta Concession

    The Rosetta concession was awarded in 1995 and is located offshore on the northwestern margin of the Nile Delta. Edison has a 20% working interest in Rosetta, and Shell holds the remaining 80% interest.

  • West Wadi El Rayan Concession

    The West Wadi El Rayan concession is in the eastern sector of the western desert basin and was granted to Edison in 2005. The field was developed with 6 production wells plus 2 water injection wells using the hydraulic fracturing technique.

Production of energy

Edison, leveraging its experience as an integrated energy operator and profiting from the liberalization of the energy sector in Egypt, decided to develop a gas-to-power project to play the role of a game changer in the Egyptian energy market. Edison signed a joint development agreement with QALAA to build a combined-cycle power plant in Abu Qir of 180 MW. The project will be Egypt’s first merchant power plant and will provide efficient and sustainable electric power to Egyptian customers.

 

Exploration activity

Egypt has a long history in Hydrocarbon Exploration & Production. In order to grow the presence in the country, Edison has undertaken active exploration activity and participates in the Bidding Round with the aim to enforce the exploration asset portfolio which includes 6 concessions.

  • North Thekah Offshore Block (NTO)

    The NTO block covers an area of about 3750 km2 in the Eastern Sector of Egypt’s offshore at about 150 km from the shore and in water depths ranging from 400-1400 m. The block is located in the area between the prolific Nile Delta Cone and the Levantine Basin. Edison owns 100% interest. The interpretation of the newly acquired 3D seismic data has already revealed the presence of relevant potential.
    Edison owns 100% interest and is operator of the block. A first exploration period is granted by the concession agreement (Law No. 7, 2014) until February 11, 2017 and requires the acquisition of a 2D/3D seismic program and drilling of 2 exploratory wells. In November 2016, EDISON started the 2D/3D program of seismic acquisition and is planning the spud of the first exploratory well in Q1 2017.

  • North Port Fouad Offshore Block (NPFO)

    The NPFO block covers an area of about 3397 km2 in the Eastern Sector of Egypt’s offshore at about 150 km from the shore and in water depths ranging from 1050-1400 m. Edison International owns 100% working interest, acting as operator of the block. The interpretation of the newly acquired 3D seismic data is ongoing, targeting the new carbonate reservoir recently tested by the Zohr discovery.

  • North East Hapy Offshore Block (NEHO)

    The NEHO block covers an area of about 2458 km2 in the Eastern Sector of Egypt’s offshore at about 120 km from the shore and in water depths ranging from 100-1100 m. Edison International owns 100% working interest, acting as operator of the block. A first exploration period that includes one exploratory well is granted by the concession agreement (Law No. 90, 2016) until January 4, 2020. Like the adjacent NTO and NPFO block, significant potential is expected.

  • South Idku Onshore (SIO)

    The SIO block covers an area of about 1575 km2 in the Western Sector of the Nile Delta onshore and is south of the producing Abu Qir Gas Field operated by Edison. The license is governed by a Production Sharing Agreement (PSA) under Egyptian law, ratified between the Arab Republic of Egypt (A.R.E.), Egyptian Natural Gas Holding Company (EGAS) and Edison International SpA.

  • North West Gindi (NWG)

    The NWG block covers an area of about 1866 km2 in the eastern sector of the Western Desert and is located north of an area characterized by a number of oil fields recently discovered by other operators. The license is governed by a Production Sharing Agreement (PSA) under Egyptian law, ratified between the Arab Republic of Egypt (A.R.E.), Egyptian General Petroleum Corporation (EGPC) and Edison International SpA. Edison owns 100% interest and is operator of the block for which it signed the concession agreement with Egyptian authorities on January 13, 2015 (effective date). A first exploration period is granted by the concession agreement (Law No. 210, 2014) until January 12, 2018 and requires the acquisition of a 2D/3D seismic program and drilling of an exploratory well. Edison is preparing the spud of the first exploratory well Q2 2017.

  • North West Al Amal (NWAA)

    The NWAA block covers an area of about 365 km2 in the central eastern sector of the Gulf of Suez and is surrounded by some of the largest producing oil fields in the Gulf of Suez area. The license is governed by a Production Sharing Agreement (PSA) under Egyptian law, ratified between the Arab Republic of Egypt (A.R.E.), Egyptian General Petroleum Corporation (EGPC), DEA (operator) and Edison International SpA. 50% interest is currently owned by EDISON, DEA being the operator in the block with the remaining 50%. The operator and Edison signed the concession agreement with the Egyptian authorities on January 13, 2015 (effective date). A first exploration period is granted by the concession agreement (Law No. 209, 2014) until July 12, 2017 and requires the drilling of an exploratory well.