Egypt has launched a new bidding round for three offshore development blocks in the Gulf of Suez: North Shadwan-1, North Shadwan-2, and North Shadwan-3, with submissions open via the Egypt Upstream Gateway (EUG) until May 17.
This initiative is part of the Open Blocks Licensing Program (OBLP), launched by the Ministry of Petroleum and Mineral Resources (MoPMR). The program ensures continuous access to investment opportunities by offering 49 blocks for bidding throughout the year.
The North Shadwan-1 block, spanning four square kilometers, holds an upside potential of 25 million barrels (mmbbl) of stock tank oil initially in place (STOIIP). To unlock these resources, the area requires an estimated $16 million investment, comprising $1 million for a single workover and $15 million for one exploration and one development well. These activities are projected to increase production to 4,150 barrels of oil per day (bbl/d).
The North Shadwan-2 block, covering nine square kilometers, contains an estimated 3.1 mmbbl of remaining reserves. To tap into this potential, the area requires an expected investment of $10 million for two new development wells, which is projected to increase production to 2,000 barrels per day (bbl/d) of oil.
In addition, the North Shadwan-3 block, also spanning nine square kilometers, boasts 26.6 mmbbl of proved reserves (STOOIP) despite currently having no active production. To bring this block online, the area requires an expected investment of $65 million for offshore wells and infrastructure, which is projected to achieve a production rate of 5,000 barrels per day (bbl/d) of oil.
EUG is the Country’s first digital platform for the upstream sector, launched by the Egyptian Ministry of Petroleum in collaboration with SLB in February 2021. The platform aims to help de-risk exploration prospects and attract new investments to Egypt.
