A subsidiary of Swiss-headquartered EPC giant Foster Wheeler has signed a three-year framework agreement with Apache’s joint venture company in Egypt.
Apache Khalda Corporation, a joint venture with state player Egypt General Petroleum Corporation, has retained Foster Wheeler to work on design, engineering and project management to assist Apache Khalda in the development and implementation of upstream projects in Egypt.
Apache is the largest oil and gas acreage holder in Egypt, holding licenses totaling 9.7 million gross acres, producing 217,000 barrels per day (Bpd) and 865 million cubic feet per day (MMcfd) in 2011, or 104,000 Bpd and 365 MMcfd net to Apache. Over 80% of the company’s license portfolio in the country remains undeveloped.
Political instability and receivables issuers have been a concern for Apache investors. The company generates some 25-30% of its cash flow from Egypt.