ONGC Videsh (OVL) and its partner IPR Red Sea have made a second oil discovery in the North Ramadan area of Egypt. The discovery is estimated to have reserves of 800 barrels of oil a day.
The discovery in well North Ramadan-2 (NR-2) is the second oil find in this block in the Gulf of Suez. The discovery well, NR-2, is located on a separate fault block north of IPR’s first oil discovery, NR-1A ST1, which produced about 3,000 barrels a day and 1.5 million standard cubic feet a day during the testing phase.
“IPR’s infrastructure, such as the offshore platform and facilities in adjacent North July field, will provide an option for expedited development of the NR-1A and NR-2 discoveries. Further analysis for development of the prospect is in progress,” said an official statement.
OVL had signed the North Ramadan concession agreement for petroleum exploration and exploitation in the Gulf of Suez with the Egyptian government in 2005. The Egyptian General Corporation holds 50 per cent stake in the block, with OVL and IPR Red Sea Inc holding the remaining in a 70:30 proportion, respectively.
The North Ramadan concession is 290 sq km in size and is surrounded by some of Egypt’s most prolific producing oil fields in the Gulf of Suez. OVL and IPR are in the first phase of exploration in North Ramadan and have one remaining exploratory well to drill.
The consortium will start drilling for the third well this month. The partnership has already acquired 205 sq km of three-dimensional (3D) seismic data during Phase I and has identified several key prospects that will be pursued in the subsequent exploration phases.
The joint venture has successfully built a cost recovery pool in excess of $50 million during Phase I.