LUKOIL Overseas is carrying out its activities in the WEEM and Meleiha concessions in close cooperation with the Egyptian General Petroleum Corporation (EGPC)
LUKOIL is a partner in the West Esh El-Mallaha, or WEEM, production project (Eastern Desert, near the town of Hurghada) with an implementation period to 2018. LUKOIL’s share in the project is 50%, and its partner is Egyptian General Petroleum Corporation (EGPC).
Production on the block began in 1997; LUKOIL entered the project in 2001 by acquiring assets of Bitech Petroleum of Canada and provided for a rapid increase in production of the fields (by more than 12 times over the first two years of its operatorship). Since 2002, WEEM has been generating a positive cash flow and is currently one of LUKOIL’s most efficient production projects. In 2004, several important infrastructure facilities were constructed at WEEM, including a tank farm with total capacity of 9,000 cubic meters and a 100-km export oil pipeline, which connected the fields in the block with the oil loading terminals in Ras El-Bikhar and Gebel Az-Zeit on the west coast of the Red Sea. Production on the field began to decline slowly in 2005 due to the natural depletion of oil reservoirs. Additional exploration program was implemented on the block to address the production decline.
Proven remaining reserves of the fields in the block exceed 5 million tons of oil. Oil production in 2012 amounted to 423,000 tons (LUKOIL’s share was 125 thousand tons).