Production Challenges in the Central Nile Delta - Fast Solutions via Rental Production Facilities. R. D. Vaughan, A. M. Noreldin, (DEA Egypt Branches) M. M. Baydoon, C. Jespersen and F. Hart, DISOUCO (Disouq Petroleum Company)

1. Page 1
Production Challenges in the
Central Nile Delta -
Fast Solutions via Rental Production
Facilities
R. D. Vaughan, A. M. Noreldin,
(DEA Egypt Branches)
M. M. Baydoon, C. Jespersen and F. Hart, DISOUCO
(Disouq Petroleum Company)

2. DEA Egypt Branches PAGE 2
Presentation Outline
• DEA Company Profile and Project Outline
• Project Stakeholders and Organisation
• Development Background
• Project Evolution and Challenges
• Project Learning's and Conclusions
| Cairo November 26th 2015 | Intergas VII

3. DEA Deutsche Erdoel AG PAGE 3| Cairo November 26th 2015 | Intergas VII
DEA: Where we come from,
and where we stand today
DEA Facts & Figures 2014
116 years
14 countries
162 licences
1.5 bn bbl OE* reserves & resources
38 mn bbl OE* production
* OE = Oil Equivalents
Other Countries
Core Countries
Germany
Canary
Islands
Libya
Norway
United Kingdom
Trinidad & Tobago
Ireland
Suriname
Turkmenistan
Guyana
Poland
Algeria
Denmark
Egypt

4. DEA Egypt Branches PAGE 4
DEA Egyptian Assets
Nile Delta
Onshore and
onshore gas-
condensate assets
Gulf of Suez
Mature Brown
Field Oil Assets
Current
production
Liquids 12,100 BOPD
Gas 39,900 BOE/D
Total 52,000 BOE/D
| Cairo November 26th 2015 | Intergas VII

5. DEA Egypt Branches PAGE 5
Project Outline
Disouq Development
 Gas Project with 0.7 TCF reserves
 Onshore central Nile Delta, 150 Km N of
Cairo
 Awarded to DEA 2004. Area under
Exploration since1965. No commercial
discoveries untill 2006
 24 Discoveries in 16 Fields
 Different structural and stratigraphic settings
 Late Miocene reservoirs, depth 2700-3100m
 Proven charge focus area
 NW Khilala RPF on stream Sept. 2013
 CTP on stream Aug 2014
 Current production 173 MMscfd, ~800 Bbls
condensate (11 wells - Week 45/2015)
Disouq Area-
1 DLA
NW Khilala DLA
Cairo
Alexandria
Port Said
DSQ Integrated Production Model
NW Khilala
RPF
Central
Treatment
Plant (CTP)
| 24.11.2015 | Disouq Subsurface Development Team |

6. DEA Egypt Branches PAGE 6
Presentation Outline
• DEA Company Profile and Project Description
• Project Stakeholders and Organisation
• Development Background
• Project Evolution and Challenges
• Project Learning's and Conclusions
•
| Cairo November 26th 2015 | Intergas VII

7. DEA Egypt Branches PAGE 7
DISOUCO
TPF Project
Manager
Project Stakeholders & Organisation
| Cairo November 26th 2015 | Intergas VII
DEA Egypt
Support
interface
Organisation
Stakeholders
DEA Subsurface
Development Team

8. DEA Egypt Branches PAGE 8
Presentation Outline
• DEA Company Profile and Project Outline
• Project Stakeholders and Organisation
• Development Background
• Project Evolution and Challenges
• Project Learning's and Conclusions
•
| Cairo November 26th 2015 | Intergas VII

9. DEA Egypt Branches PAGE 9
• NW Khilala lies on western edge of central graben (semi
isolated mini-basins) bounded to the east by the Central
Nile Delta Inversion
• N-S to NW-SE trending 3-way dip structure with two major
culmininations (NW Khilala and West Khilala)
• Late Miocene (Messinian, Abu Madi Formation) lacustrine
turbidtite sheet sand and shales. Reservoir sands and
shales are vertically and laterally heterogeneous.
• NWK-1ST1 discovery – drilled Oct 2008. Net pay = 33m,
Av. Sw = 40%, NTG = 54%. Upper Abu Madi encountered
a GDT (Gas Down To)
• NWK -1-3 appraisal well to north - drilled in May 2010.
Upper Abu Madi encountered a GDT
• NWK-1-2 appraisal to south - drilled in Aug 2011. Upper
Abu Madi encountered a GDT
NW Khilala Field:
Development History (1)
NW Khilala DLA (DEA)
W Khilala DLA
(PetroCeltic)
Depth Structure Map:
Abu Madi Formation
| Cairo November 26th 2015 | Intergas VII

10. DEA Egypt Branches PAGE 10
NW Khilala DL
NW Khilala Field:
Development History (2)
| Cairo November 26th 2015 | Intergas VII

11. DEA Egypt Branches PAGE 11
Presentation Outline
• DEA Company Profile and Project Outline
• Project Stakeholders and Organisation
• Development Background
• Project Evolution and Challenges
• Project Learning's and Conclusions
•
| Cairo November 26th 2015 | Intergas VII

12. DEA Egypt Branches PAGE 12
Disouq Development Timeline
| Cairo November 26th 2015 | Intergas VII
Regulatory Events / milestones
Political Events
DEA Decision Gates / DEA Board Approval
Q1/2011
Development
concept selected
Based on PoD
FEED
CTP / 3rd party tie-in
NW Khilala
Commerciality
11/2009
GSA Signed
1stGasDeadline
GSA Amended
1st Gas End 2013
CTP
05/2011
Revision of
FEED of initial
concept
Revised Concept & FEED
Appraisal drilling NW
Khilala
NW Khilala tie-
back to CTP
Q2/2012
Execution
Q2
2013
Execution
09/2013
First
Gas
NW Khilala RPF
Feasibility
FEED &
Market
Survey
5 months
Political Event Political Event Political Event
CTP Execution
08/2014
First
Gas
2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Development Schedule (43 month from Concept to Start-up of CTP)

13. DEA Egypt Branches PAGE 13
• Early Gas via tie-in to Mansoura Gas Plant
• Cluster development tied in to Central
Treatment Plant (CTP)
Development Plan as of January 2011
- POD of 2010 Third Party Tie-in -
| Cairo November 26th 2015 | Intergas VII
• First gas to third party due in Aug. 2011
• First gas due in CTP Jul. 2012
• 3 export lines (2 gas / 1 cond.)
Central
Treatment
Facility
NW Khilala 3rd
Party Tie-in

14. DEA Egypt Branches PAGE 14
Development Plan as of August 2011
- Shareholder agreed fall-back concept -
• Tie-in to third party failed
• General delays due to political and socio-
economic challenges
• Increase of required man power to cover
additional tasks
| Cairo November 26th 2015 | Intergas VII
• Tie-in of NWK to CTP via 8 inch line
• 2 export lines (gas/condensate)
• All gas treated at CTP
• First gas due in Mar. 2013
NW Khilala 3rd Tie-back to CTP

15. DEA Egypt Branches PAGE 15
Development Plan as of April 2013
- Executed concept including RPF-
• RFP Production 58 MMscfd/d (4 wells)
• DSQ Central area tied-in to CTP
• First gas CTP planned for 09/2014
• 2 export lines (gas & condensate)
| Cairo November 26th 2015 | Intergas VII
• RPF at NW Khilala
• RFP sanctioned April 2013
• First gas TPF 08/2013
• NWK-1-4 drilled
NWK 1-4

16. DEA Egypt Branches PAGE 16
Presentation Outline
• DEA Company Profile and Project Outline
• Project Stakeholders and Organisation
• Development Background
• Project Evolution and Challenges
• Project Learning's and Conclusions
•
| Cairo November 26th 2015 | Intergas VII

17. DEA Egypt Branches PAGE 17
NW Khilala Field
RPF Impressions
Well heads and RPF site located in populated agricultural area. Local populous raised high expectation
of DEA against backdrop of socio-economic and political instability, civil unrest and poor security
| Cairo November 26th 2015 | Intergas VII
Drilling operations
Day-to-day Life JTV and LTS Vessel16” Trunkline to Export
Glycol Re-boiler Slug Catcher – Inlet Separator
NW Khilala RPF
NWK-1-2 HIPPS/ Well Head
Main Process Area
Condensate Storage

18. DEA Egypt Branches PAGE 18
Lessons learned and conclusions
• Fit-for-purpose organisation among participating stakeholders
• A clearly defined technical scope
• Effective relationships with regulatory / governmental organisations
• Fully integrated team with a common goal
• Continue to negotiate with NOC right after FEED to safeguard project value for all parties
• Optimise procurement process in terms of time & cost. Embed procurement in the project team
• Consider technical & commercial contingencies and political and socio-economic factors in your
budgets / schedules
• Specialized companies should supervise the engineering, procurement, construction and
commissioning
• Define the man power required for every stage of the project realistically
• Balance level of facility automatisation and consequent CAPEX for just “nice to have” features
• Consider skid mounted facilities versus full blown permanent facilities
| Cairo November 26th 2015 | Intergas VII

19. DEA Egypt Branches PAGE 19
The authors would like to like the numerous colleagues involved in the
North West Khilala EPF Project
The support of the JV Operating Company DISOUCO and project
shareholders DEA and Egyptian Natural Gas Holding Company is
acknowledged
| Cairo November 26th 2015 | Intergas VII
Thank You / Acknowledgements / Questions