Banner 3

September 2011
  Greetings from StratoChem Services!


We wish to announce the course entitled "Basin Modeling and Kinetics" taking place in Cairo, Egypt beginning 25th October 2011. More information on the three day course, offered by Douglas Waples is available in the attached flyer.  We look forward to seeing you there.
For additional information, please refer to the flye
or direct inquiries to: 

Turkey, Egypt to Drill in Mediterranean  

( - September 16, 2011) 


Egyptian flag small 


     Turkey intends to cooperate with Egypt in searching for natural gas in the Mediterranean, given the latter's experience in deep-water drilling, Turkish Energy Minister Taner Yıldız says on an official visit to Egypt. Egypt and Turkey may partner up to explore for oil and gas in the eastern Mediterranean Sea, Turkish Energy Minister Taner Yıldız said during an official visit to Cairo on Wednesday.


     "Egypt and Turkey can work together on the fields of oil and [natural] gas, we evaluated this issue and need some more time [for further steps]. We can search together in the Mediterranean," said Yıldız, not giving details on the project while speaking to journalists. The minister also emphasized Egypt's experience in deep-water drilling. 


     The minister, who is currently in Egypt accompanying Turkish Prime Minister Recep Tayyip Erdoğan, said he had met with Egypt's ministers for oil and electricity during his visit, which he said had been "extremely fruitful." He also said Turkey signed two memoranda with Egypt on energy cooperation. "One of them is about joint projects in third countries, the other regards electricity."


     Turkey is working on a master plan for electricity-interconnection in the southern and eastern Mediterranean countries including Syria, Lebanon, Jordan, Palestine, Egypt, Libya, Morocco and Algeria, said Yıldız. "Thus, an interconnecting system will be available for the southern Mediterranean region, as it is for the north," he added. "We import natural gas from five countries and oil from 11. Egypt can be the sixth country that exports natural gas to Turkey," the minister said, adding that Egypt produces about twice the amount of energy Turkey consumes.


     Moreover, Yıldız also said he expected the 1,200-kilometer Arab Natural Gas Pipeline to be completed by the end of this year, adding that the pipeline would have two routes. One pipeline flows from Azerbaijan to Syria, Lebanon and Jordan via Turkey and the second from Egypt to Turkey, he added. Turkey will also demand for six wells in Libya to be enlarged and for deadlines to be extended, according to a Reuters report on Wednesday.


Iran to Install Persian Gulf's Largest Offshore Oil Platform
( September 16, 2011)                                                                          

 Iranian Flag


     Operations to install the P4 platform, built by Iranian experts, in Irans offshore Persian Gulf Reshadat oil field, 110km south west of Lavan island, will start next week.  According to the Iranian news agency Shana, the Tasdid Marine Structures Development Co. built the 229-foot high, 3,100-ton structure, which will be installed in the Reshadat field, 68 miles southwest of Lavan Island.


   According to Tasdid Marine Structures Development Co. managing director Amir Panahi, Once in operation, the platform will produce 75,000 barrels of oil daily. The P4 platform in the Reshadat oil has a weight of 3100 tons, which will increase to 4500 tons following the installation of stabilizing pillars. Panahi added that a structure weighing 9,000 tons would be installed on the platform.


     Panahi added that Tasdid Marine Structures Development Co. engineers were responsible for all stages of design, purchase, construction, loading, transfer and installation of the platform and if the project had been subcontracted out to a foreign company it would have cost 1.5 to 2 times more. The Reshadat oilfield P4 platform was ordered by the Falat Qarreh oil company.


    National Iranian Oil Company Managing Director Ahmad Qalebani recently announced that Iran's oil exports have increased by 50,000 barrels per day since the beginning of the current Iranian calendar year , which began on 21 March, despite U.S.-led sanctions and noted that more than 60 percent of the necessary equipment for Irans oil industry is now produced domestically and that its share of oilfield equipment production will exceed 90 percent by 2014.

Egyptian Exploration Discoveries in Beach's Abu Sennan Concession


( - September 6,  2011) 


Egyptian flag small


   Beach Energy Ltd announced two exploration discoveries from its wells in the Abu Sennan concession, in the Western Desert.  The production testing on both wells, GPZZ-4 and Al Ahmadi-1, is being held to assess volumes and commerciality.  It is expected that there will be an expeditious tie-in of the wells due to the location of the wells being within 10 kilometers of existing pipeline infrastructure.  The GPZZ-4 was drilled as the first well of a six- well program in the Abu Sennan concession.


     During initial drilling, hydrocarbon shows were found in the lower and upper Bahariya Formations, and the Abu Roash "G" Member. An extensive testing program of these formations is currently underway.  The second well, Al Ahmadi-1, has also encountered hydrocarbon shows within the Kharita Formation, the lower Bahariya Formation, the Abu Roash "G" Member and the Abu Roash "E" Member. Hydrocarbon zones highlighted by the wireline logging and testing will be followed up with a significant cased hole-testing program.


     "This is a fantastic result for Beach's International operations and is a credit to the team that identified the potential of this permit in Egypt's Western Desert. We have mentioned on a number of occasions that in order to grow reserves and production, one has to look beyond its own shores, hence why we strategically identified and invested in countries such as Egypt. These discoveries at Abu Sennan justify this strategy and we firmly believe that there will be further success in the not too distant future," Beach Managing Director Reg Nelson commented on the new achievements.


    The Joint Venture equity interests in Abu Sennan are: Beach (via wholly owned subsidiary Beach Petroleum (Egypt) Limited) - 22%, Kuwait Energy - 50% and Operator Dover Petroleum - 28%.

Saudi Oil Output at 30-Year High


( - September 16, 2011)


  Saudi Arabian Flag  


    Saudi Arabia pumped the most oil in 30 years last month as it boosted production along with other members of the Organisation of Petroleum Exporting Countries' (Opec) including Nigeria, Angola, Iraq, Kuwait and the United Arab Emirates, the International Energy Agency said. Daily supply from Opec's 12 members rose to 30.26 million barrels a day in August from 30.09 million in July, the Paris-based IEA said Tuesday in its monthly oil market report.


     Saudi Arabia, the world's largest crude exporter, produced 9.8 million barrels a day last month, compared with a revised 9.7 million for July, the IEA said - the highest in three decades. "Exports appear largely unchanged from July levels, with the increased volumes dedicated to meet higher demand for direct crude burn," the IEA said. The country used about 700,000 barrels a day for power generation in July, versus 615,000 in June.


Egypt: Qarun Develops Aqsa Field


( - September 7,  2011)


Egyptian flag small


     Qarun Petroleum Company (QPC) drilled a new development well, AQSA-14 in the Western Desert, with an estimated cost of $1.153 million.

According to a top official at the company, the drilling depth averaged 9525 cubic feet and the well was drilled by the EDC-19 rig, in the Abu Gharadiq Basin. Back to September 2010, QPC completed the development of Aqsa well 5 as oil, after it was drilled to the Lower Bahariya Formation.


Iraq to Boost Oil Output to 3MM Barrels a Day by Year End


( - September 16, 2011)  

Iraq Flag 

 Addressing an energy conference in the Jordanian capital Amman, Iraqi Oil Minister Abdelkarim al-Luaybi said, "We seek with international companies to produce three million barrels per day (bpd) by the end of 2011, and export 2.5 million bpd s next year. We are implementing a plan that is unprecedented in the history of Iraq's oil industry, multiplying oil and gas production to four times and building gigantic infrastructure and projects to turn Iraq into a key energy source in the world." 

Al-Luaybi conference comments will doubtless be closely observed by the 46 foreign oil firms in attendance, NOW Lebanon online journal reported.



     Following the 2003 U.S.-led invasion of Iraq, Iraqi oil production slumped dramatically, but eight years later the country currently produces around 2.7 million bpd and Baghdad hopes to increase that figure to 12 million bpd within the next five years, which would place Iraqi production ahead of both Saudi Arabia and the Russian Federation, which currently produce roughly 10 million bpd.  The Iraqi governments projected increases are regarded as overly optimistic in some quarters, including the International Monetary Fund, which has voiced doubts over whether Iraqs 2016 target is attainable.


Libya: Sirte Oil Restarts Natural Gas Production

( - September 15, 2011) 

Libyan Flag        

     Libya's Sirte Oil Co has restarted natural gas production at several fields among the largest in the country, a Libyan official at Benghazi said Wednesday, adding to faster-than-expected resumption in oil production following the fall of Moammar Gadhafi last month. In an interview with Dow Jones Newswires, Kalid Kwafi, the acting head of the association of oil companies and employees of Benghazi, said state-owned Sirte Oil has restarted gas production in recent days at the Attahaddy and Hateiba fields in Eastern Libya, which will be used for local power generation.


     After oil and gas production was reduced to a trickle when civil war erupted, both sides of the conflict were forced to rely on expensive fuel imports, with the rebels getting shipments from Vitol, to satisfy the needs of electricity plants. The fuel imports 'cost too much money' so the gas resumption means 'no need for fuel' for power generation, Kwafi said. 


     Sirte describes Attahaddy and Hateiba as among the largest gas fields in Libya, with the former producing 270 million cubic feet a day in addition to 35,000 barrels a day of condensates. It's unclear how much Hateiba is producing. Until now, only the Eni-operatedWafa field was producing natural gas in Libya.


     The news comes after the Arabian Gulf Oil Co, another state company operating in Eastern Libya, said Tuesday its production had reached 160,000 barrels a day, after starting output higher than planned and ahead of schedule.


     The collapse of Libya's production of hydrocarbons--of which it holds the largest reserves in Africa--threw global energy markets into chaos earlier this year, leading Saudi Arabia to increase oil output unilaterally and consumers to draw on their emergency stockpiles.


Iraq: Government Energy Committee Approves Shell Gas Deal on Southern Oil Fields 


( - September 13, 2011)


Iraq Flag 


     A top Iraqi government energy committee has approved a deal with Royal Dutch Shell to capture and exploit gas from its giant southern oil fields, the country's oil minister said Sunday. The Iraqi oil ministry struck a deal in July with Shell and Japan's Mitsubishi Corp to develop gas production in southern Iraq. To become valid the deal needs approval from the Baghdad government.


     Shell will process associated gas from the Rumaila, West Qurna phase 1 and Zubair fields. 'It was agreed upon by the energy committee and was sent to the cabinet for approval,' Abdul Kareem Luaiby told Dow Jones Newswires on the sidelines of an Iraqi energy meeting in Amman, Jordan. The committee is chaired by the deputy prime minister for energy affairs, Hussein al-Shahristani, and its members include the ministers of oil, electricity and finance. Luaiby declined to say when exactly the cabinet would approve the deal. The agreement must first be examined by the cabinet's legal and specialized offices, he said.


     The 25-year venture calls for an investment of $17.2 billion to create the Basra Gas Company. Baghdad would have a 51% stake, Shell 44% and Mitsubishi 5%. Some $12.8 billion would be spent on infrastructure and $4.4 billion on construction of a liquefied-natural-gas facility. Under the agreement, the company must first meet local demand but can export any gas not used by Iraq's fuel-starved power plants. The planned LNG terminal would handle the export of 600 million cubic feet a day.


     Baghdad would contribute $5.236 billion to the venture, including some $1.524 billion in existing infrastructure. Shell and Mitsubishi need to contribute nearly $7 billion, and the remaining money will be financed through the venture's returns, according to the summary submitted by Iraq's oil ministry to the country's parliament. The venture would process associated gas produced from three supergiant Iraqi fields--Rumaila, West Qurna phase 1and Zubair--all in Basra governorate.


      'We are committed to supply the venture with 1.6 billion cubic feet a day from these fields,' Luaiby said. The joint venture would sell produced gas to Iraq's state-owned South Gas Company, at international standard pricing. Iraq estimates it should make around $31.1 billion over the 25 years of the project from taxes, fees and raw gas sales to the joint venture, the document said. An Iraqi oil expert, who asked not to be named, however, said Iraq would make nearly $100 billion from the venture because the gas would substitute for the oil currently used to fuel Iraq's power stations. Iraq would tax Shell and Mitsubishi profits at 35%, he said. The expert said Shell and Mitsubishi will make a 7% profit on the whole venture.


     Iraq has natural-gas reserves totaling 112.6 trillion cubic feet, the 10th largest in the world. But it produces only around 1.5 billion cubic feet a day, because of a lack of infrastructure.



Morocco's Zeus Prospect Potential Increases 


( September 9, 2011)

Moroccan Flag

    Tangiers Petroleum's interpretation of the latest 2D seismic survey over the Zeus Prospecton Morocco's Tarfaya Block have shown a significantly larger structural closure than that previously mapped. The latest results have provided the company with further support for the scope and potential of the prospects, recording a materially significant increase in their prospective size.  The broad, four-way dip closure, which is located at the Top Jurassic horizon, is estimated to cover an area of 1030 sq km. The Top Jurassic fractured dolomite reservoir lies directly beneath the Jurassic-Cretaceous unconformity and is located further inboard of the ancestral Jurassic shelf edge.

     Mark Ceglinski, chairman of Tangiers Petroleum, commented, "Tangiers is delighted with the latest seismic interpretation results for the Tarfaya Block, offshore Morocco. The upgrade in the areal extent of Zeus and the identification of six additional prospects is expected to provide a significant boost to our existing prospective resource base in Morocco once NSAI completes its evaluation of the Zeus, Little Zeus, and other prospects. The next phase in this process will be to mature identified Cretaceous leads to prospect status. This is all part of a broader effort to strengthen and expand the company's exploration portfolio in the region."

Syria Shrugs Off EU Sanctions - Eyes China Oil Sales


( - August 17, 2011)  


Syrian Flag    


     Syria plans to sell the oil European customers cannot take under a new EU import ban to Russia or China and will be unharmed by western sanctions as long as its own energy needs are met, Syria's finance minister said on Wednesday. 


     The European Union, which buys nearly all Syria's exported oil, has banned Syrian oil imports to pressure President Bashar al-Assad to end his violent crackdown on anti-government protests but still allows fuel sales to Syria. 'The sanctions will not hurt Syria, Syria will remain standing on its own two feet... There is no problem as long as our local needs are secure,' Syrian Finance Minister Mohammad al-Jleilati told Reuters in Abu Dhabi.


     The EU stopped short of banning all trade between European energy companies and Syria because Brussels did not want to increase the suffering of the Syrian people by cutting off fuel needed for power generation. But Syria is now looking for new buyers for the 110,000-150,000 barrels a day (bpd) of crude it typically exports -- 99 percent of it to Europe -- and hopes the world's biggest oil producer, Russia and major importer China will buy some of it. 


     'We will either refine it ... or sell it directly to Russia, China or any country that accepts to buy our extra oil,' Jleilati said. 'Otherwise we will keep it as reserves,' he added, without explaining whether that meant shutting down production from Syria's oil fields or pump into storage sites.


     The International Energy Agency estimates Syria produced around 370,000 bpd of oil in July, while monthly Syrian crude loading programs pegged exports at 150,000 bpd -- worth nearly $16 million a day at current prices.


    According to the U.S. Energy Information Administration (EIA), Syria can refine up to 240,000 bpd, so it does not have anywhere near enough spare capacity to process all the crude it has been selling to Europe until now. So it will have to slash crude production unless it can find buyers for its heavy crude and neither China nor Russia seem likely to want it unless offered at a big discount. 'The size of Syrian oil exports is relatively small... so it's not very convenient to load and transport Syrian crude to China,' said a trader at Chinese state oil company. 'I can't see any demand for Syrian crude in the near term... But if Syrian crude is cheap enough, I won't rule out the possibility of buying it in the future.'


     Russia, as the world's second largest crude exporter, is even less likely to buy Syrian crude. 'I think Russia won't spoil relations with Europe or the United States because of that,' trader at a Western trading house in Moscow said.


Issue: 09 - 2011

Nile-o-meter 2

Print Version  

Join Our Mailing List
September Oil Chart
 Gas Chart September 2011

 New at StratoChem!

     The "Rock-Wash" is an automated instrument which will clean muddy and contaminated cuttings from drilling wells. It washes the cuttings, rinses them, dries them and takes a high resolution, binocular photograph of the clean, dry, labelled cuttings. The clean cuttings are then packed and stored. Throughout the automated process, the individual samples are electronically tagged to prevent mis-identification. The customer receives an electronic photograph of each cutting at its position (depth) down the well. The Rock-Wash at Stratochem is one of only three instruments in the world (the other two are in the USA and Europe) and can process about 500 samples per day.

In This Issue
Turkey, Egypt to Drill in Mediterranean
Iran to Install Persian Gulf's Largest Offshore Oil Platform
Egyptian Exploration Discoveries in Beach's Abu Sennan Concession
Saudi Oil Output at 30-Year High
Egypt: Qarun Develops Aqsa Field
Iraq to Boost Oil Output to 3MM Barrels a Day by Year End
Libya: Sirte Oil Restarts Natural Gas Production
Iraq: Government Energy Committee Approves Shell Gas Deal on Southern Oil Fields
Morocco's Zeus Prospect Potential Increases
Syria Shrugs Off EU Sanctions - Eyes China Oil Sales
Join Our Mailing List

Nile-o-meter 4

SCS Building  

Upcoming Events
There are no abstract deadlines occurring in October 2011.  
The following conferences occur in October 2011:
  • 1st Sakhalin Workshop on Hydrocarbons 2011 in Yuzhno-Sakhalinsk, Russia - starting 3 October 2011
  • 6th Congress of Balkan Geophysical Society in Budapest, Hungary - starting 3 October 2011
  • Education Day Stavanger 2011 in Stavanger, Norway - starting 10 October 2011 
  • Gulf Coast Association of Geological Societies 61st Annual Convention in Veracruz, Mexico - starting 16 October 2011
  • EAGE Education Tour (EET) 5: Stavanger Seismic Geomechanics: How to Build and Calibrate Geomechanical Models using 3D and 4D Seismic Data in Stavanger, Norway - starting 17 October 2011
  • Full-Wavefield Tomography / Full-Waveform Inversion: a Game Changing Technology (Short Course) in Stavanger, Norway - starting 17 October 2011
  • Education Days Stavanger 2011 - Multiple Short Course Programme in Stavanger, Norway - starting 17 October 2011
  • SEG/EAGE Disc 2011: Paris in Paris, France - starting 25 October 2011
  • SPE, Annual Technical Conference & Exhibition 2011 in Denver, Colorado, USA - starting 30 October 2011
  • SEG/EAGE  DISC 2011: Paris - Seismic Acquisition from Yesterday to Tomorrow in Paris, France - starting 31 October 2011

For more complete conference information, go to the bottom of our home page at:


Join Our Mailing List

Nile-o-meter 6

For more information please contact us at or call us at 202-2516-1075. 
StratoChem Services
                                                                   23/D/5, Shoukry Abd El-Halim St.
 Laselky, New Maadi Cairo, Egypt