West Delta Deep Marine (WDDM)

West Delta Deep Marine (WDDM) Oil and Gas Project Profile

Location

The West Delta Deep Marine (WDDM) project is located offshore Egypt, in the Mediterranean Sea, approximately 90-120 kilometers northeast of Alexandria and 90-120 kilometers from the shore of the north-west Nile Delta.

Project Details

• Concession/Block: West Delta Deep Marine (WDDM)
• Coordinates: 31.9725, 30.347 (WGS 84)
• Water Depth: The fields are situated at water depths ranging from 700m to 850m, although the overall concession area extends to depths of 300m to 1,200m.

Operators and Owners

• Operator: Shell Egypt (previously operated by BG Egypt)
• Owners: Shell Egypt (50%) and Petronas PICL (50%).

History and Development Phases

• Sanction Year: The WDDM concession was sanctioned in 1995.
• Discovery Years: Key discoveries include Scarab and Saffron fields in 1998 and 1999, respectively, followed by other fields such as Simian, Serpent, Sapphire, Sienna, and Saurus between 1999 and 2002.
• Production Start: The first two fields, Scarab and Saffron, started production in March 2003.
• Development Phases:
  • Phase 1-3: Initial development involving the Scarab and Saffron fields.
  • Phase 4: Sanctioned in 2006, completed in 2008, adding seven additional wells.
  • Phase 5: Sanctioned in late 2007, commissioned in May 2009, focusing on increasing production from Scarab and Saffron facilities.
  • Phase 6: Sanctioned in mid-2008, first gas produced in August 2009, involving the Sequoia field.
  • Phase 7: Sanctioned in 2009, involving a new pipeline, compressors, and a power plant, completed in 2011-2012.
  • Phase 8a & 8b: Sanctioned in 2010 and 2011, respectively, adding more subsea wells.
  • Phase 9a: Sanctioned in March 2013, involving nine new wells, with the first well starting production in July 2014.
  • Phase 9b: Announced with a potential $4 billion investment, pending resolution of payment issues between the Egyptian Government and BG.
  • Phase 10 & 11: Phase 10 was sanctioned in 2023, and Phase 11 was announced in April 2024, involving the drilling of three development wells.

Production and Reserves

• Gas Production: Approximately 1,602.01 million m³ per year (as of 2020).
• Condensate Production: Approximately 0.66 million barrels per year (as of 2020).
• Remaining Recoverable Reserves:
  • Gas: 17,591.67 million m³ (as of 2021).
  • Hydrocarbons: 113.16 million barrels of oil equivalent (boe) (as of 2021).
  • Oil and Condensate: 9.62 million barrels (as of 2021).

Fields and Infrastructure

• Number of Fields: The concession comprises 19 gas fields, with 12 fields currently in production.
• Key Fields: Scarab, Saffron, Simian, Sienna, Sapphire, Serpent, Saurus, Sequoia, SimSat-P2, Sapsat-1, Sapsat-2, and Swan.
• Subsea Wells and Manifolds: The fields are connected to onshore processing terminals via subsea wells, manifolds, and pipelines.
• Onshore Processing: Production from the Scarab and Saffron fields is conveyed to the SEGAS LNG complex in Damietta, while other fields' production is sent to a two-train LNG plant near Idku, east of Alexandria.

Partners and Joint Ventures

• Burullus Gas Company: A joint venture between EGPC (50%), BG Egypt (25%), and Petronas (25%) to operate the WDDM concession.

Current Developments

• Phase 11: Announced in April 2024, involving the drilling of three development wells using the Scaraboe 9 offshore drilling rig.

Economic and Regulatory Context

• Investments: Significant investments have been made, including a $1.5 billion investment for Phase 9a and a potential $4 billion for Phase 9b.
• Regulatory Environment: The project benefits from new regulations aimed at attracting foreign investment and improving relationships with local administration.