Khalda Petroleum Company has reduced the cost of oil produced from the Apache concession area in the western desert to $4.5 per barrel in the first quarter of the current fiscal year, down from $5.
Mohamed Abdel Azim, head of the Khalda Petroleum Company, told Daily News Egypt that the company successfully reduced costs by $0.5 per barrel through obtaining discounts on services and equipment contracts used to carry out drilling operations.
He explained that the company saved $155,000 per day on crude oil production costs in the last fiscal year, as the cost per barrel was lowered from $6 in the fiscal year (FY) of 2014/2015 to $5.
He added that this has saved $22m in the past fiscal year, as the company obtained discounts of up to 30% on services and equipments.
The company succeeded in saving $3.7m annually, simply by reducing the transportation time of equipment before its use.
Abdel Azim said that the company agreed with both Egyptian drilling companies to reduce the lease value of the drilling equipment by 7-20% after the decline in the oil price, which saved a further $7m.
The same measures are planned to be adopted in other fields in the western desert to save more funds.