Russia’s Lukoil is set to invest $73 million in the development of the West Esh El Mallaha oil field in Egypt’s Eastern Desert, according to a statement by Egyptian Oil Ministry.
The investment aims to enhance oil reserves and increase production capacity.
Lukoil is actively seeking a five-year extension to the existing 25-year concession contract, which recently expired, and plans to finance Esh El Mallaha Petroleum Company (Eshpetco), covering work programs and labor costs, according to a document from the Ministry of Petroleum and Mineral Resources.
The West Esh El-Mallaha Extension Development Lease, a productive conventional oil field situated onshore Egypt, is under the operation of Petromallaha.
Ownership of the field is shared among Egyptian General Petroleum, Ganoub El Wadi Petroleum Holding, and Lukoil Oil.
As of now, the West Esh El-Mallaha Extension Development Lease has successfully recovered 35.31% of its total recoverable reserves, reaching peak production in 2022. With current economic projections, production is anticipated to persist until the field reaches its economic limit in 2051, according to Off-shore Technology website.
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