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    •    ll   FOR IMMEDiA!J REtEASf                    ~
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<iJ\/orld Bank
   18l8 H StreefN.w., Wa~hington,          p.c. 20433, ~.S.A. • Telephone~ (202) 477-1 B4
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          BANK NEWS RELEASE NO. 82/57                                                       Contact:   Helhem Salman
        . March·iS,~1982                                                                               (202) 477~5328
                                  EGYPT TO DOUB~E ·OFFSHORE GAS PRODUCTIO~ FROM ABU. QIR FIELD
                                                   WITH WORLD BANK ASSISTANCE

                      Egypt will double gas production from its Abu Qir gas field with World
         Bank    assistance. This gas field is located, offshore in the Mediterranean Sea,
         sdme    35 miles from Alexandria. This development phase is anticipated to cost
         $189    million and will increase the production of natural gas from 100 million cubic
         feet    ~er day (MMcf/d) to 200 MMcf/d~     ·

                   To. he 1p fl nar.ce this deve 1opment, the Wor Id Bank has approved a 1oan of
         $90 million to the Egyptian General Petroleum Corporation. This loan will be guar-
         ,~t~e~ ~y the Arab Republic of Egypt. Co-financing by the European lnvistment Bank
         aod o~her sources is expected to be about $55 million.
                 Egypt has    large and relatively unexploited reserves of natural gas. By
     developing i,,ts g.as fields, Egypt wi 11 1;be ir. a position to release 1 iquid hydrocarbons,
 " . currently being used in the domestic market~ for exports. This project wi 11 cater to
   ~ the demand of the Alexandria area and release approximately 1 million ton, of oil per
    \Wear for exporL l·n addition, it would produce condensates and 1 iquefied petroleum
·    gas wh,i ch is current 1y being imported.

                      Project works include an offshore production platform with nine gas wells,
         a utd 1 ity platform, anci 1lary faci llties, and two submarine pipelines. Onshore, the
        ,project ihcludes facilities for gas separation, gas dehydration, a condensate stabi-
          lization unit, a slug catcher,and a flare syste~. A liquefied petroleum ga, plant
         design~d for a flow of 250 MMcf/d and two truck loading stations will also be
         constructed~ An 18-inch submarine pipeline with a 250 MMcf/d ~apacity wiil be in-
        .;!sta 1led to carry gas and condensate from the . new production p 1at form to onshore
         facilities. ~ 14-inch line to connect th~ existing and new production platforms
         will also~be installed.

                   A seismic survey, technical assistance, trainJJJg, an.d studies related to
         the project and to the oil and gas sector will also be~ ~,need under this project.
                         ()
                   The World Bank loan is for 20 years,,gncluding three years .of grace.                            Interest
         is at 11.6% per annum.


         NOTE:       Money figures are expressed in U.S. dollar equivalents.
                                        ()


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      PROJECT:
      COUNTRY:
      TOTAL
                  ;,;:;~\\
              cos,r:
                                      Abu Qir"Gas Oevelopmant

                                      Egy,pt

                                      $189 mi 11 i on
                                                                                                       •
                                                                   0



      BANK Ff NANC I NG :             $90 mi11 ion .. for 20 years, iricluding three years of grace,
                                      at 11~6% per annum in interest


{)
      OTHER   FINANCING:              Eur9pean Investment Bank/other sources, $55 mrl 1 ion;
                                      Government of Egypt/Egyptian General Petroleum
                                      Corporati~n, $44 million


      IMPLEMENTING ORGANIZATION:      Egyptian General Petroleum Corporation (EGPC)
                                      P.O. Box 2130
                                      Cairo, Arab Republic of Egypt
                                      TELEX: 92049 UN   CABLE: PETMISR

      PROJECT DESCRIPTION:         It consists of: i) a production platform with 9 wells, a
                                   utility platform, ancil°lary facilities, and 2. submarine pipe-
      lines; ii) gas separation, gas dehydration, and condensate recovery facilities~' a slug
      catcher, a Liquefied Petroleum Gas (LPG) plant, a flare system, and supply.and distribution
      pipelines onshore; and iii) teC'hnical assistance, training, a seismic survey, and proj.-
      re1ated studies.




     PROCU.REMENT:                      Goods and· works to be financed under the Bank loan wi 11 be
                                        procured through i nternat i ona 1 competitive bid~ i ng (·I CB) in
      accordance with Bank guidelines. Drilfing services and materials needed f&r operational
      flexibi1ity,··or those which might delay the well drilling operation if procured through
      ICB, may be procured through the government•s competitive bidding procedures which do not
      exclude foreign bidders and are acceptable to the Bank. The aggregate of such procurement
     1:t,i 11 not exceed $12.5 mi 11 ion and no single contract wi 11 exceed $500,000. Tendering for
      pipeline construction, platfor~~s, production modules, and civi 1 works wi 11 be 1 imited to
      prequalified contractors. Domestic suppliers will be allowed a margin of preference of
      15% or the l~cat.. ~us~oms ~uty, whichever is lower.                   ·· ···     ·


     CONSULTANTS:                   Co_nsulting services for: project engineering, management and
                                    construction supervision; and assistance in drilling opera-
     tions, soil investigation and preparation of a pipeline route survey. Studies for a gas
     system for Upper Egypt; a natural gas pipeline grid,'~lpeline expansion capacity, and an
     analysis of EGPC 1 s computer needs and improvements in its financial systems.


     ECONOMIC RATE OF RETURN:
     ESTIMATED COMPLETION DATE:
                                      Over 100%

                                      1984
                                                    - 0 -
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