Pennzoil steps up Gulf of Suez exploration

Where Pennzoil is Exploring Off Egypt (54969 bytes). Pennzoil Exploration & Production Co. has stepped up its commitment to exploration in the Gulf of Suez off Egypt. The Houston operator took a farm- out from Forum Exploration Co., an independent Egyptian company, on the Southwest Gebel El-Zeit concession in the southern gulf. Pennzoil acquired an 87.5% working interest in the noncontiguous spread, on which it will be operator. Egypts minister of petroleum approved the trade.

Oct. 9, 1995

2 min read

Where Pennzoil is Exploring Off Egypt (54969 bytes).

Pennzoil Exploration & Production Co. has stepped up its commitment to exploration in the Gulf of Suez off Egypt.

The Houston operator took a farm- out from Forum Exploration Co., an independent Egyptian company, on the Southwest Gebel El-Zeit concession in the southern gulf. Pennzoil acquired an 87.5% working interest in the noncontiguous spread, on which it will be operator.

Egypts minister of petroleum approved the trade.

The Pennzoil-Forum combine is committed to spend at least $3 million for exploration during the next 3 years, which constitutes the second exploration phase of their agreement. The third and final phase, which is optional, calls for outlays of at least $5 million during 3 additional years.

On the schedule is a 3D seismic survey early in 1996 as a prelude to drilling a commitment well in the second half of the year.

The trade with Forum is in addition to Pennzoils agreement with Repsol of Spain to explore the Southeast Gulf of Suez block. That tract surrounds Shoab Ali oil field, where original oil in place is estimated at about 750 million bbl.

Pennzoil said the Egyptian programs are in line with its international strategy of pursuing proven exploration plays. The focus is on a few countries that have potential for multiple material projects. Copyright 1995 Oil & Gas Journal. All Rights Reserved.