Egypt Kuwait Holding (EKH) announced the completion of drilling operations of the first well located in the offshore North Sinai field (KS-12) at a depth of 1,698 metres and with an estimated cost of $15 million.
Production of natural gas from the well began on 13 July at a daily output capacity of about 25 million cubic feet, with plans to be raised to 40 million cubic feet, the company said in a statement to the Egyptian Exchange (EGX) on Wednesday.
The well is expected to generate revenues of more than EGP 500 million over the next two years, the statement added.
It is noteworthy that NSCO Investments Limited, in which EKH owns a 99.99% stake, won an offshore gas concession in North Sinai, in partnership with the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS).
During the first quarter of 2019, EKH’s net profits reached $28.79 million, compared to $25.37 million during Q1-18.
Meanwhile, revenues rose to $134.89 million in the three-month period ended 31 March from $112.87 million in the same period a year earlier.
Year-on-year, EKH’s standalone profits hiked to $8.36 million in Q1-19 from $2.8 million.