Shell, Apache to Begin Shale Gas Production in Egypt Early Next Year

Royal Dutch Shell and Apache Corp are expected to commence shale gas production from the Apollonia field in the Western Desert in February 2016, according to Daily News Egypt.

Khalda Petroleum Co, which is undertaking operations on behalf of the two companies, will start drilling two experimental wells, data and pilot wells, in the Apollonia field.

In December last year, Cairo signed its first shale gas exploration agreement with Apache and Shell.

Drilling operations will start at the first well by the end of this month, while the second one will be drilled directly after finishing the first well in June after studying and evaluating the core samples and well logs, reported Daily News Egypt. The two companies will start drilling the horizontal wells in November. The first well will be drilled and completed and the same will take place for the second one by the next half of 2016.

According to the newspaper, construction works of surface facilities will start from September until December 2015, while the first well will be linked to the facilities by the beginning of January 2016.

Egypt has set $5.45 per million British thermal units (mmBtu) as the price for shale gas extracted by foreign firms.