Cheiron Petroleum Corporation

Cheiron Petroleum Corporation (CPC) is a specialist E&P company focused on mature field development (with upside) in Egypt, Mexico and Romania. The company is actively screening for additional opportunities in mature markets where its core technical skills are in demand.

Our News

Latest Developments at Cheiron Romania

Through its operating joint-venture Fora Oil and Gas, Cheiron Romania has successfully completed the drilling of its first well — the Oporelu 1 — at a TD of 3,300 m, with initial tests showing gas potential in the Triassic Porus and Dogger zones. Cheiron is currently working on an appraisal plan for the well to determine the reserve volumes and necessary production facilities required to produce the gas.

In addition, Cheiron is preparing to commence operations at its other concessions — Silistea, Cosminile and Chislaz — in 2014.

TransOcean 124 Rig Contracted for 14 Months

In February 2014, the TransOcean 124 rig was contracted for a period of 14 months, five of which will be spent in the Gemsa and Zaafarana fields while the remaining nine will be in the Amal Field. In the Zaafarana Concession, the rig will conduct four rig-assisted workovers, while in the Amal Field it will conduct three rig-assisted workovers, drill one development well and complete the offshore work needed to maintain platforms A and B.

Cheiron Petroleum Corporation (CPC), a PICO Group company, has operated the Zaafarana Field since 1999, the Gemsa Field — the first discovered in Egypt — since 1995 and the Amal Field since 1994.

Comet Rig Recontracted in Geisum Until End of March 2014

In June 2013, the Comet rig commenced operations in the Geisum Concession and completed the drilling of three wells. The rig has been recontracted until the end of March 2014 to finalize the drilling of six wells and two rig-assisted workovers.

The Geisum Concession is located at the southern entrance of the Gulf of Suez and has been operated by Cheiron Petroleum Corporation (CPC), a PICO Group company, since 2007.

Conclusion of Negotiations with EGPC Results in Long-Term Gas Sales Agreement

Cheiron Petroleum Corporation (CPC), a PICO Group company, has successfully completed negotiations with the Egyptian General Petroleum Corporation (EGPC), signing a settlement agreement for the extension of three rigs and a long-term gas sales agreement.

On 1 October 2013 Cheiron began negotiations with the EGPC to settle all issues regarding future investments. On 28 October, Cheiron signed a short-term gas sales agreement to cover the period from May 2013 to October 2013. A day later, on 29 October, the company signed a settlement agreement with the EGPC regarding the extension of three concessions — Amal, Gemsa and South Ramadan — and was awarded a new concession, Tawila West, through an agreement with Ganoub.

In January 2014, Cheiron concluded negotiations and signed a new long-term gas sales agreement with the EGPC, including a gas price three times the figure originally contracted.

Amal Shutdown, Start-Up and Commissioning Completed in Record Time

Cheiron Petroleum Corporation (CPC), a PICO Group company, completed the successful shutdown and start-up of the Amal Field to implement Phase One of the Amal Field Development Project, a project started in 2006 with a total budget of USD 283 million and set to be implemented over three phases.

The shutdown and start-up process, which began on 12 January 2014 and was scheduled to take place over the course of 12 days, was completed on 15 January, after only four days. By 18 January, production — which was 38 million MMSCFD on 15 January — had increased to 42 million MMSCFD.

The scope of the shutdown was to complete and inspect all pipeline tie-ins, connections to the control unit, instrumentation and facilities integration between the onshore and offshore facilities. Phase One of the Amal Field Development Project is to reach a production level of 10,000 BFPD and 70 MMSCFD with an estimated total budget of USD 186.6 million, which includes new subsea and overland production and export pipelines (4.5”, 4”, 24”, 2 X 16”), GOSP upgrade, new storage tanks, platforms maintenance and upgrading, in addition to new administration buildings, labs and control units.

Elsharkawi Appointed CEO of Cheiron Petroleum Corporation

Cheiron Petroleum Corporation (CPC), a PICO Group company, is pleased to announce the appointment of leading international oil and gas expert Dr. Hany Elsharkawi as its Chief Executive Officer. As CEO, Dr. Elsharkawi has assumed responsibility for directing all activities at CPC assets across an international footprint that spans Egypt, Romania and Mexico.

A 38-year veteran of the industry, Dr. Elsharkawi joined CPC with a proven track record of achievements in the exploration and development of offshore and onshore oil and gas reserves from a wide range of environments across Canada, U.S.A., Australia, Egypt, U.K., Libya, Tunisia, Yemen, Bulgaria and Venezuela.

Dr. Elsharkawi’s career, which started with Shell in 1975 as an explorationist, has included a number of senior management positions with international oil and gas companies, including: Shell, Mobil, Oxy, Centurion Petroleum Corporation, and most recently as President of Dana Gas Egypt, a subsidiary of the Middle East’s leading private sector natural gas producer — Dana Gas PJSC.

Professionally, Dr. Elsharkawi is a member the Society of Economic Geologists, the Canadian Society of Exploration Geophysicists, the Association of Professional Engineers and Geoscientists of Alberta, the Canada Egypt Business Council, the American Chamber of Commerce in Egypt, the Chamber of Petroleum and Mining Industries in Egypt and sits on the board of trustees of the Egyptian Institute of Directors.

Dr. Elsharkawi holds an M.Sc and Ph. D. from the University of Manitoba and a B.Sc from Alexandria University, is widely published within the field and has instructed several technical courses at universities and oil and gas organizations.

Cheiron Asset Base Expands to Romania

30 May 2013

In step with its strategic plans to acquire promising brownfield oil and gas assets across regions that favor its core operational competencies, Cheiron Petroleum Holding Cheiron Petroleum Corporation (CPC) has recently acquired a majority share and operatorship in the rehabilitation of five mature onshore oil and gas fields in Romania.

The five fields, which are all in close proximity to existing infrastructure, are Silistea (discovered 1910), Cosminele (1950), Oporelu (1967), Cosesti (1977) and Shislaz (1994).

The reservoirs at the five fields are mainly formed by sandstones with some carbonates at depths ranging from 1000m (Silistea) to 3100m (Oporelu), while all five fields have multiple oil and gas reservoir zones with oil gravity ranging from 33 to 42°API. Gas composition is mostly methane with moderate condensate yields and is free of contaminants (Co2, H2S, N2, etc).

Total oil and gas production from the five fields amounted to 12.96 MMSTB and 124.4 BCF, respectively. Production stopped in 2005 from the last active field while others ceased operations as early as the late 1970s. A total of 134 wells were drilled at the five fields with 50% active wells during past operations. Presently, most of the wells are P&A with some suspended, which poses favorable possibilities for re-entry.

Incentivized by a very attractive Romanian fiscal regime, CPC will push for aggressive expenditures and value generation. Operational commitments for the upcoming period will include field development studies, the selection of five to six wells for re-entry, 3D seismic data acquisition, horizontal and vertical well drilling of eight new wells over the next three years, as well as the upgrade of existing surface facilities.

The assembly of an experienced, growth-oriented management team is already underway – a key component of making the most of this promising new venture.

Handover of Altamira Operations from Pemex Complete

19 April 2013

The scheduled handover of operational control of the Altamira oil field from Petróleos Mexicanos’ (Pemex) to Compañía Petrolera de Altamira (CPA), a Cheiron Petroleum Holding subsidiary, has been completed.

Having outbid its competition for comprehensive E&P operations at the Altamira field during Pemex's 2012 bid round, CPA signed the Altamira contract with Pemex on August 20 2012. A Field Development Plan for Altamira is already underway with the field’s current 2P reserves estimated at around 10 million barrels of oil with huge upside potential.

CPA’s plan over the next two years is to shoot a large area of 3D seismic and drill over 15 development wells with a view to ramping up the field’s production. The company is currently assessing the applicability of EOR techniques in the field as well as room for production optimization.

Zahra Barge Contract Extension

Coming in October, 2012, management expects to announce the extension of the Zahra Barge Service Contract for an additional three months period to end in January 2013. The Zahra Barge, which was originally designed as a jack up barge, is located adjacent to Platform B. Due to the limited space available on the platform, Zahra Barge acts as a key service provider for platform B; including the well services, manpower accommodation, power generation and crane.

Amal Field October 2012 Drilling/Workover Campaign

Amal Field 100 day drilling and workover campaign is expected to commence during October using Bahari 1 Rig. The Rig contract is a farm out agreement between Amapetco and Zeitco. This campaign includes the drilling of Am-22 as well as the workover jobs for Am-17and Am-18 with an expected gain of +/- 2,200 bopd.

Gemsa and Zaafarana upcoming workover campaign

On September 30, 2012, a farm out agreement will be signed between Gempetco and SUCO to hire Zoser Rig for a 3 months period starting Mid October 2012. The campaign includes work over activities for five wells in both Gemsa and Zaafarana Fields with an expected gain of +/- 2,500 bopd.

Cheiron Inks Altamira Service Contract

20 August 2012

Cheiron Petroleum Corporation (CPC) announced today the signing of a service contract for the Altamira asset part of Petróleos Mexicanos’ 2012 bid round.

The signing was through CPC’s recently incorporated Mexican SPV Compañía Petrolera de Altamira (CPA) with an effective start date to the contract of 1 October 2012.

Altamira is a service contract for Pemex as field owner; the field’s current 2P reserves are estimated at c. 10 million barrels of oil with substantial upside potential.

CPC is currently in process of preparing its Field Development Plan, which includes a major drilling program as well as several technological improvement pilots that, once successful, are expected to have strong impact on the current daily production levels.

Cheiron is also in process of establishing an operating office in Tampico from which it plans to expand its operations in Mexico.

Cheiron Petroleum Corporation Outbids Competition at 2012 Pemex Bid Round

20 June 2012

Cheiron Petroleum Corporation (CPC) has outbid its competition on the Altamira asset part of Petróleos Mexicanos (Pemex)'s 2012 bid round.

Altamira is a service contract for Pemex as the field owner; the field's current 2P reserves are estimated to be around 10 million barrels of oil with huge upside potential.

CPC’s initial plan over the next two years is to shoot a large area of 3D seismic and drill over 15 development wells with a view to ramping up the field’s production. CPC is also currently assessing the applicability of EOR techniques in the field as well as room for production optimization.

The signature date for the contract is 20 August 2012, with the handover of operations expected in the fourth quarter of 2012.

Operations in Zaafarana

Cheiron has operated the Zaafarana Concession since 1999 when it acquired 60% of BG’s 50% share, to hold a 30% Working Interest (“WI”) in the Concession. Since it took over operations at the Concession, Cheiron has successfully arrested the field production decline trend and maintained production at a plateau rate of 7,000 to 8,000bopd. Zaafarana Field production commenced via a 15-slotwellhead platform connected to the FPSO vessel moored 750 meters away. This FPSO is the only FPSO in the Gulf of Suez and wider Middle East.

Operations in Amal

Following up on its successful campaign in 2008, during which Cheiron Energy drilled 5 wells in Amal Field, the company has completed its surface and subsurface studies. Cheiron is currently preparing for the drilling of two exploratory wells and three development wells in Amal in Q3 2012.

As a result of the 2007-2008 development drilling program, production at the Concession had increased by late 2008 to 9,000 bopd and 18 MMscfd (maximum pipeline capacity). At the outset of implementing the Plan, the Rudeis objective was realized in three of the five wells drilled in 2007-2008. The Belayim Reservoir was also confirmed as an additional gas reservoir target. This proved substantial additional reserves in the field.

Cheiron Petroleum Corporation Completes Largest Offshore Pipeline in GoS in Amal Field

8 February 2012

Cheiron has successfully completed the first phase in unlocking the potential value of its Amal field with the completion of a new 24” subsea production pipeline—one of the largest in Egypt’s Gulf of Suez region—and new processing, gas compression, water injection, and artificial lift facilities. The pipeline will enable the Amal field to produce higher production levels with an initial increase of production rates to 22,000 bopd and 85MMscfd (maximum pipeline capacity) of oil and gas respectively eventually reaching 120 MMscfd.

Cheiron is on schedule to begin its ambitious drilling program early next year; the drilling program is expected to increase its production from the Amal field more than threefold.

Successful Workover of Well A-4 in Zaafarana Field

6 February 2012

On January 8, 2012, the Rig approached the PF to fish the stuck ESP Pump. The workover was successfully completed and put on production on February 6, 2012. A larger pump was installed with a more capacity, which in return increased oil production to 1,900 bopd—a rate that is higher than the initial expectations for the well’s production.

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Please direct any inquiries to:

Corporate Development Department
Cheiron Petroleum Corporation