Production Sharing Agreement (PSA)
Incentives and Solutions: Egypt’s Oil Recovery Prospects in a Low Price Environment
Tuesday, 19th May 2015
Oil recovery is a necessity, not a luxury, for an energy-importing nation like Egypt that has a limited number of oil producing wells, most of which are already mature. With a rapidly rising population and a slow pace of exploration there simply is no substitute for Improved and Enhanced Oil Recovery (IOR/EOR). It has been estimated that as much as 60% of a well’s original supply stays locked in a reservoir at the end of its 30 to 40 year life-cycle. IOR sets the scene so to speak; beginning at the primary and secondary stages and targeting mobile oil, while EOR comes at the hardest tertiary (third-stage) and involves immobile oil. Cairo University’s Mining Studies and Research Center estimates that as much as 3.2Bn barrels of oil remain to be extracted at this final stage.