KUALA LUMPUR, Malaysia – Egypt’s Ministry of Petroleum division Ganope has awarded Gulf Hibiscus and Pacific Oil an offshore exploration block in the southern Gulf of Suez.
The South East Ras El Ush concession (block 2) covers 68 sq km (26 sq mi) in water depths up to 75 m (246 ft), and is surrounded by development leases. It contains the West Ashrafi discovery, which was included in the award and may be developed via a tie-in to nearby onshore infrastructure.
Two wells drilled on West Ashrafi field tested commercial oil and gas.
Seychelles-based Pacific Oil will operate the concession, using its management team’s experience in Egypt.
The award remains subject to execution of a definitive agreement. Gulf Hibiscus, a subsidiary of Hibiscus Petroleum, estimates its costs for the first four-year phase minimum work commitment at around $8 million.