GSPC initials PSCs for three Yemen exploration blocks

Vol 11, PW 5 (12 Jul 07) People & Policy
     

Gujarat State Petroleum has â€کinitialled’ PSCs for three onland exploration blocks in Yemen.

PETROWATCH understands PSCS for blocks 19, 28 and 57 were initialled on June 22nd between operator GSPC (45%) and partners Alkor Petroo (25%), Jubilant Enpro (35%) and Yemen authorities. The next step is for the PSCs to be ratified by Yemen’s parliament after which they will be signed, most likely within the next two months.

When the PSCs are signed, GSPC will begin a six-year, two-phase work programme on all three blocks. In Phase-I, lasting four years, the GSPC consortium must shoot 2D, 3D seismic and drill 10 wells.

In Phase-II, lasting two years, the consortium is committed to drilling five wells. Phase-I will see a total expenditure of about $60m; Phase-II will see expenditure of $30m.

There’s good news also from Egypt for the two exploration blocks in GSPC’s sights there. Early this month, Egypt’s parliament passed a decree awarding North Hap’y and South Diyur to a consortium of operator GSPC (50%), GeoGlobal (30%) and Alkor Petroo (20%).

PSCs will be signed next month after the GSPC consortium pays signature bonuses of $4m for each block. North Hap’y is a 4180-sq km undrilled gas-prone offshore block in the Nile Delta, and lies in water depths between 700 and 1200 metres.

South Diyur measures 37,678-sq km and is an oil and gas-prone onland block in southern Egypt’s Western Desert. GSPC is committed to drilling six wells on North Hap’y during the six-year work programme and two wells on South Diyur during Phase-I in addition to shooting 2D and 3D.

Entering Phase-II is conditional on the results of Phase-I. Says a GSPC source: “If we want we can directly begin development work in Phase-II after Phase-I.

â€‌ GSPC says both its Egypt blocks lie in known petroleum bearing provinces. “Shell and Eni are exploring (in) and producing from blocks around North Hap’y,â€‌ we hear.

“Shell, BP and BG are present around South Diyur.â€‌

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