Khalda Petroleum, a joint venture (JV) between Apache and the Egyptian General Petroleum Corporation (EGPC), has signed an agreement with the Egyptian Electricity Transmission Company (EETC) to implement a $35 million project to connect the Razzak production area in Egypt’s Western Desert to the national electricity grid.
While its primary mandate is exploration and production, Khalda’s role extends into field development and infrastructure integration, ensuring that associated gas from its oil blocks is captured, processed, and delivered into the national transmission system.
This investment aims to improve operational reliability, reduce energy costs, and support more sustainable production operations, Khalda stated.The project includes the construction of a new 66-kilovolt (kV), 25-megawatt (MW) electrical substation, which Khalda described as a pioneering initiative among Egypt’s petroleum production companies.
The grid connection will replace diesel-powered generation at Razzak’s wells and production facilities with a more stable and reliable electricity supply.
The project is expected to save about 30 million liters of diesel, avoiding around $33 million in diesel consumption and $2.52 million in diesel-generator rental costs. It will also reduce fuel transport, storage, operating, and maintenance requirements while reducing about 80,000 tons of carbon dioxide (CO2) emissions.
Discovered in the seventies, Razzak field is considered one of the oldest oil fields in the Western Desert.
Operating as an industry-leading exploration and production company, Khalda has played a vital role in unlocking the potential of the Western Desert and supporting Egypt’s energy security. The company made 15 oil discoveries and bolstered its reserves by around 15 million barrels of oil equivalent (mmboe) during the first half (H1) of fiscal year (FY) 2025/26. It also drilled 26 development wells and carried out 75 work overs during the same period.
In April, the company connected its Tarik wells to a medium-voltage (22 kilovolts (kV)) grid. The project spans 67 kilometers (Km) of electrical network with a total investment of $11.3 million. It aims to reduce diesel consumption by more than 8 million liters annually, saving around $500,000 per month, and to cut carbon emissions by around 2,175 tons per year (t/y).
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