Cheiron and INA Farm in to the East Damanhour Concession in Egypt
Egyptian E&P company Cheiron Petroleum Corp. and Croatia’s INA Industrija nafte dd have entered into a deed of assignment with Wintershall Dea GmbH, pursuant to which Cheiron and INA will acquire a 40% and 20% working interest, respectively, in the East Damanhour concession (Block 10), onshore Egypt. The terms of the transaction have not been disclosed.
Wintershall Dea had signed a concession agreement for East Damanhour with the Egyptian Natural Gas Company (EGAS) in February 2020. The agreement provided for the drilling of a total of 8 wells, with a total minimum investment of US$43 million.
The East Damanhour concession covers an area of 1,418 sq. km onshore in the Nile Delta basin, situated to the west of Wintershall Dea’s Disouq project. The license was originally awarded to Wintershall as part of the 2018 Bid Round, with an exploration term of 3 years. The acreage is relatively under explored, with 10 identified prospects and leads in an established, low-risk, amplitude-driven shallow gas play. The work program for 2021 includes an exploration drilling campaign of first 3 wells.
“We know the area well, so we anticipate low geological risks. Furthermore, our existing infrastructure at Disouq means that we are well placed to quickly develop any commercial discoveries,” said Sameh Sabry, Senior Vice President & Managing Director of Wintershall.
“We are pleased to join Wintershall Dea and INA-Industrija nafte, d.d. in this promising new venture in region of the Nile Delta where Cheiron is seeking to establish a core business area,” commented David Thomas, CEO of Cheiron.
“We are also looking forward to working with our new partners and will be ready to contribute to the joint venture by sharing our technical expertise, particularly with respect to seismic attribute analysis techniques developed evaluating the West El Burullus and Papyrus discoveries,” he added.
Part of the PICO Group, Cheiron Petroleum is engaged in the exploration, development and production of oil & gas in Egypt, Romania and Mexico.
Zagreb-listed INA is engaged in exploration & production, refining & marketing, and retail services, with upstream operations in Croatia, Angola and Egypt, 2 refineries at Rijeka and Sisak in Croatia, and a regional network of around 500 petrol stations in Croatia and neighboring countries. The company’s major shareholders include MOL Group (49.1%) and the Government of Croatia (44.8%).