Shell Announces Discovery of New Gas-Bearing Reservoir in Egypt

An offshore gas platform. (Reuters)
An offshore gas platform. (Reuters)
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Shell Announces Discovery of New Gas-Bearing Reservoir in Egypt

An offshore gas platform. (Reuters)
An offshore gas platform. (Reuters)

Shell Egypt announced it discovered a new gas-bearing reservoir in the Northeast el-Amriya block in Egypt’s Mediterranean Sea.

The company said in a press release that it has “safely and successfully completed the drilling of the first well in its three-well exploration campaign, Mina West, located in the Northeast el-Amriya block, in the Mediterranean Sea.”

Shell indicated that drilling activities occurred at a water depth of around 250 meters below sea level in the offshore Nile Delta, with primary data confirming the presence of a gas-bearing reservoir.

“Further evaluation of the acquired data is required to determine the size and recoverable potential of the discovery.”

Vice President and Country Chair of Shell Egypt Khaled Kacem said the discovery is an important step forward for Shell Egypt, “bolstering our growth aspirations and ongoing commitment as a critical partner in Egypt’s energy landscape.”

“Successful delivery of our current exploration campaign is part of Shell Egypt’s growth strategy. Shell, together with its partners, will continue to work towards safely and efficiently reaching the development phase of the block,” he added.

In September, Shell signed a Farm-Out Agreement (FOA) with Kuwait Foreign Petroleum Exploration Company (KUFPEC), under which KUFPEC acquired a 40 percent stake in Northeast el-Amriya block, with Shell holding the remaining 60 percent stake of the partner’s share with the Egyptian Natural Gas Holding Company (EGAS).

Shell had contracted the Stena Drilling for Mobile Offshore Drilling Unit (MODU), Stena Forth rig, to carry out the drilling campaign.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.