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INVESTMENT
Egypt’s state-owned Khalda

Petroleum plans to invest
$900mn in FY 2022/2023

Egypt’s state-owned Khalda Petroleum plans to
invest $900mn in fiscal year 2022/2023, which
starts in July, in support of drilling and pro-
duction activity with a production output tar-
get of 130,000 barrels of oil equivalent per day
(boepd), media sources reported, citing com-
pany spokespersons.
The company is aiming to increase daily
natural gas production to 625-631mn cubic
feet (17.7-17.9mn cubic metres), mostly to be
directed towards domestic consumption. The
company wants to achieve higher output tar-
gets by increasing number of deployed digging
equipment from 10 to 14 by mid-2023 with the Sirius-Somoil will be making targeted invest- Paladio, and Plutonio make up the first produc-
ultimate aim of sinking 100 wells in its current ments in Sonangol social projects in Angola as ing complex known as Greater Plutonio. Pro-
exploration and development phase. part of its committed strategy of working with duction started in 2007 and remains at material
Khalda Petroleum is a leading oil and gas partners to improve lives through sustainability levels. Late last year the Platina project started
company based in Egypt’s vast Western Desert. initiatives in the community. production, adding significant volumes and
A joint venture between Apache Corp. and the Block 31 (producing): Acquiring a 10.0% reserves to total block production. Licence part-
Egyptian government, the company is the sec- interest for a total consideration of $170m. ners are currently BP (26.67%), Equinor (13.3%),
ond-largest producer of liquid hydrocarbons Unrecovered development cost balance of circa Sinopec International (15%), Sonangol (45%).
and natural gas in Egypt. $14bn boosts contractor group entitlements, Current gross production from the block is
bna/IntelliNews, May 11 2022 enhancing overall EBITDA per barrel and long- averaging circa 80,000 bpd of oil. Gross 2P/2C
term returns. reserves of 220mn barrels relate to existing pro-
Sirius-Somoil consortium is located offshore some 400 km north west of ing to the operator. Future payments, on new
The Block is operated by BP Angola and duction and sanctioned developments, accord-
signs SPA to acquire stakes Luanda. The block consists of four oil fields; developments within the block, are contingent
Plutão, Saturno, Vénus and Marte (PSVM), on sustained high oil prices (greater than or
in Blocks 18, 27 and 31 which were discovered between 2002 and 2004 equal to $75 per barrel) and first oil from long-
in water depths of up to 2,000 metres in the term developments.
offshore Angola North East part of Block 31. PSVM is the second acquiring a 25.0% non-operated interest in this
Block 27 (exploration): The Consortium is
BP-operated development in Angola and pro-
Sirius, the Africa-focused oil and gas production duction started up in December 2012. Licence deepwater exploration and appraisal block for
and development company and its local JV part- partners are currently BP (26.67%), Equinor a total consideration of $500,000. The block is
ner, Somoil, the largest privately owned Angolan (13.3%), Sinopec International (15%), Sonangol located offshore in the Kwanza basin, an area
oil company, have announced that the joint Siri- (45%). known for its gas potential.
us-Somoil consortium has signed a legally bind- Current gross production from the block is The Proposed Acquisition is conditional
ing Sale and Purchase Agreement (SPA) with averaging circa 80,000 bpd of oil. upon satisfactory due diligence (DD) being
Sonangol, Angola’s state-owned oil company, to Gross 2P/2C reserves of 275mn barrels conducted and following signing of the SPA the
acquire participating interests of 8.28% and 10% relate to existing production and sanctioned Consortium will enter a period of DD of the data
respectively in the producing Angolan offshore developments, according to the operator. Fur- for blocks 18, 31 and 27 supplied to the Consor-
Blocks 18 and 31 and a 25% participating interest ther gross 2C resources of 516 mn barrels from tium by Sonangol. The economic effective date
in the exploration Block 27, for a total considera- existing discoveries, according to Gaffney Cline of the Transaction is April 2022. Completion is
tion of $335.5mn. & Associates. Future payments, on new devel- expected to take place in 2022, subject to cus-
Proposed Acquisition Summary: Acquiring opments within the block, are contingent on tomary conditions and approvals.
non-operating interests in prolific deepwater sustained high oil prices (more than or equal The Consortium expects that the Proposed
production assets with strong cash flow charac- to $75 per barrel) and first oil from long-term Acquisition will be financed through the provi-
teristics. Current gross production from Blocks developments. sion of new debt facilities.
18 and 31 is averaging circa 160,000 bpd of oil. Block 18 (producing): Acquiring an 8.28% Commenting, Bobo Kuti, CEO of Sirius,
Net production entitlement to the Consortium interest for a total consideration of $165mn. said: “The acquisition of these interests in such
expected to average 15,500 bpd of oil. Significant The block is operated by BP Angola and is world class producing assets, operated by a
cash flow entitlement given low operating costs located offshore, 160 km northwest of Luanda. super-major, is in line with our strategy to build a
and unrecovered costs. Major medium and long- Eight discoveries have been made in this block, high-quality portfolio of African producing and
term development upside. of which the fields Galio, Cromio, Cobalto, development assets.

P16 www. NEWSBASE .com Week 19 11•May•2022