Arab Finance: Technical studies by Texas-based oilfield services company National Energy Services Reunited (NESR) have identified promising potential for unconventional oil production in several Western Desert concessions, according to Egypt’s Ministry of Petroleum and Mineral Resources.
Minister of Petroleum Karim Badawi reviewed the findings with Sherif Foda, Chairman and CEO of NESR. The company conducted the studies with a US-based institution and international experts specializing in unconventional oil and gas.
The assessments indicate opportunities to increase crude oil production by tapping resources that conventional extraction methods have left unexploited. These resources lie within low-permeability rock formations that prevent oil from flowing at economically viable rates using traditional production techniques.
Producing oil from these formations requires specialized technologies, including hydraulic fracturing, to stimulate the rock and improve oil flow.
To test the findings, the meeting concluded with an agreement to take practical steps toward preparing a pilot drilling program through coordination among NESR, the Egyptian General Petroleum Corporation (EGPC), and operators of the targeted concessions. The program would assess the identified potential under field conditions and establish the technical and economic feasibility of expanding unconventional oil operations.
Specialist experts are scheduled to visit Egypt to review the study results with EGPC’s production team. They will identify the technical and technological requirements and define the operational steps needed to move toward implementation.
Badawi said assessing and developing unconventional resources forms a key part of the ministry’s strategy to diversify production sources and increase domestic crude oil output. This work complements efforts to intensify exploration, accelerate the development of new discoveries, and improve production efficiency at existing fields.
He emphasized the importance of advanced technologies and specialized international expertise in identifying and developing additional domestic production sources.
