“Naftogaz of Ukraine” begins commercial oil production in Egypt

The Company has sold the first consignment of oil, received on the field «HG» of the eastern block of Alam El Shawish in accordance with the terms of the Concession agreement between Arab Republic of Egypt (ARE), Egyptian General Petroleum Corporation (EGPC) and National Joint – Stock Company “Naftogaz of Ukraine”.The Company continues further increasing of the volume of extracted hydrocarbons on the noted concession area.
Successful realization of the project on development and industrial exploitation of the eastern block of Alam El Shawish promotes the acceleration of energy sources diversification to Ukraine and the establishment of Ukraine's international image as a powerful energy state.
December 13, 2006 - a concession agreement signed among ARE, National Joint – Stock Company Naftogaz of Ukraine and EGOC for the prospecting and development of oil and gas deposits in Alam El Shawish East in the Western Desert of Egypt (general area 994). In accordance with the Concession Agreement the period of exploratory work will last till December 13, 2011.
The Company has opened 3 hydrocarbon fields on the territory of the indicated block.
During seismic surveys, six exploration wells and two test wells were drilled. Currently the Company is drilling another one.