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Apache With Shell Eye Egypt for Unconventional Gas in June

  • Partners to drill first well this month at Western Desert site
  • Egypt seeking to boost gas output to meet rising local demand
Updated on

Apache Corp. and Royal Dutch Shell Plc plan to start producing unconventional gas from their joint venture in Egypt’s Western Desert by the end of June even as Apache is cutting investment in the nation because of falling oil prices.

Apache and Shell will start drilling the North African country’s first unconventional gas well in a pilot project by the end of March, Apache Egypt Region Vice President and General Manager Thomas Maher said in an interview in Cairo. Apache and Shell will drill two additional wells before talking with the government about full development of the field by horizontal drilling and fracking, he said.