The North El Amriya and North Idku (NEA/NI) Development is a subsea tieback gas project in offshore Egypt that involved the development of gas fields in the two concessions.

The NEA and NI concessions are fully owned by Energean.

They are operated through different 50/50 JV companies under the overall management of Abu Qir Petroleum.

The Final Investment Decision (FID) on the NEA/NI subsea tieback gas project was taken in January 2021, and first gas was achieved in March 2023.

At the time of FID announcement, the total capital expenditure of the project was expected to be approximately $235m. Most of the cost was incurred in 2022.

The development is expected to meet the energy requirements of Egypt as well as improve long-term production profile of the company in the country.

North El Amriya and North Idku site details

The NEA/NI development is located in shallow water adjacent to the Abu Qir concession in the Mediterranean Sea.

NEA has two discovered and appraised gas fields called Yazzi and Python, while NI features four discovered gas fields including one developed asset.

The two concessions also host additional mapped but undrilled prospects.

The fields are developed as satellite fields to the Abu Qir gas-condensate offshore and onshore infrastructure.

The Abu Qir concession, the oldest gas production area in the Mediterranean Sea, is located in Abu Qir Bay in the West Nile Delta.

It features three fields- Abu Qir, North Abu Qir and West Abu Qir, making it one of the largest gas producing hubs in Egypt. The concession expires on 31 January 2033.

Discovery and Geology

Python and Yazzi fields were discovered in 2010 and 2011 via exploratory wells NEA_3X & NEA_4X, respectively. The two fields host gas and condensate in BKES and Abu Madi formations.

The production sharing contract (PSC) for the NEA concession expires on 31 December 2039.

The Field A of the North Idku (NI)-Block A was discovered in 1999 through exploratory well NI_1X well. It will produce gas from BKES Formation.

The NI-Block B was discovered in 1999 by two exploration wells NI_2X and NI_4X wells. The field may be developed in the future.

The PSC for the NI concession will also expire on 31 December 2039.

NEA/NI development details

The NEA/NI Development contains an estimated 39 million barrels of oil equivalent (mmboe) of proved and probable (2P) reserves, with gas accounting 88% of the reserves.

The net working interest production is expected to peak at 15-20 thousand barrels of oil equivalent per day (kboed) (88% gas) in 2024.

The development of the project included three subsea wells drilled in water depths ranging from 30 to 85m. Another well was drilled for the development of N-1 discovery. The infrastructure of N-1 discovery was installed alongside the NEA Development.

All the wells were tied back to the North Abu Qir PIII Platform and to the processing plant.

The NEA-6 was the first well to become onstream. The remaining three wells will enter commercial production gradually throughout 2023.

Contractors involved

In February 2021, UK-based TechnipFMC secured an integrated Engineering Procurement Construction and Installation (iEPCI) contract for the development of North El Amriya and North Idku (NEA/NI).

The scope of the contract included the design, development, delivery, and installation of the subsea equipment including the subsea trees, subsea production system, umbilicals, and production manifolds. The contract also included the delivery of jumpers, flexible pipelines, and associated subsea and topside controls.

The contract was valued between $75m and $250m.

Mechanical components manufacturer TP-Products received their second contract with Technip FMC for the NEA/NI Development. The contract included the delivery of pull heads.