Naftogaz seeks to conduct independent audit of Egyptian project for possible sale
National joint-stock company Naftogaz Ukrainy intends to attract an investment and banking advisor who will assess how much the company can receive from sale of its assets in Egypt, Naftogaz Commercial Director Yuriy Vitrenko has said.
"He will assess real offers and how much [buyers] are ready to give for this project. We will compare it with our expectations," he told reporters in Kyiv on Tuesday.
He said if the assessment exceeds the company's expectations Naftogaz would raise the issue of selling its Egyptian assets at the meetings of the supervisory board and government.
As reported, Naftogaz through its subsidiary Zakordonnaftogaz explores and operates two oil and gas blocks in the Eastern Desert of Egypt - South Wadi El Mahareeth and Wadi El Mahareeth. The work on these deposits, the projected resources of which exceed 360 million tonnes of oil, is carried out on the basis of concession agreements signed on February 7, 2012 between Zakordonnaftogaz on behalf of Naftogaz and the government of the Arab Republic of Egypt and GANOPE state oil company (Ganoub El -Wadi Holding Petroleum Company).
The duration of the concession agreements is 28 years.
Naftogaz Ukrainy in 2015 increased production of oil and condensate in Egypt by 20.7% compared to 2014, to 318,000 tonnes (2.33 million barrels). Commercial gas production was 192 million cubic meters, which is 4.8 times more than in 2014.
As of January 1, 2015 Ryder Scott company conducted an independent assessment of the Naftogaz branch's hydrocarbon reserves/resources in Egypt, according to which total recoverable reserves (proven and probable, 2P) amounted to 1.132 million tonnes of oil (8.2 million barrels) and 599.6 million cubic meters of gas.