The US$6 billion project is expected to begin production in 2007 and will have a 25 year lifespan.
"Principal terms include supplying approximately 400 million cubic feet of gas (mmcf) per day to the Egyptian market over the first five years and 375 mmcf per day for the remainder of the term," said Apache CEO and president G. Steven Farris.
"Upon finalisation of the agreements, we will have effectively contracted for all of the gas we have found to date in the deep water."
Farris said Apache will begin appraisal drilling on the concession and start infrastructure construction soon after the final agreements are executed. In addition, he said, "We have another five Pliocene-age gas exploratory prospects and eight Miocene-age prospects in the area."
In its first deepwater foray, Apache discovered gas in the deepwater portion of the concession in May 2002 with its Abu Sir-1X well. Three consecutive discoveries and a successful appraisal well followed. Apache operates the deepwater portion of the concession with a 55% contractor interest. RWE-DEA has a 35% interest and BP holds the remaining 10%.
