TOKYO - Japan's AOC Holdings said on Friday that plans to start commercial crude oil output from Egypt's offshore Northwest October block in the northern Gulf of Suez would be delayed until May 2012. Production from the block had previously been slated for later in 2010. AOC, the parent of oil and gas development unit Arabian Oil Co Ltd, has a 50 per cent stake in the block and State-owned Egyptian General Petroleum Corp holds the remainder. An AOC official said the firm expects peak output of crude oil from the block to be around 6,000 barrels per day. In a related event, oil and gas explorer Melrose Resources Plc said it made a new gas discovery with good reservoir properties at an exploration well in Egypt. The South Damas No. 1 exploration well in the South East Mansoura concession was expected to be on stream within six months at an initial rate in excess of 12 million cubic feet equivalent per day (mmcfepd), the company said in a statement. Melrose said the well encountered the top reservoir at a depth of 4,345 feet and penetrated 76 feet of net gas pay. It said the preliminary estimate of the discovered reserves was 30 billion cubic feet equivalent (bcfe), which was in line with the pre-drill analysis. The company said the capital cost was $3.3 million. Melrose said it planned to drill another well in the South East Mansoura concession after the completion of the South Damas No. 1 well. Melrose also plans to drill an exploration well in the fourth quarter 2010 at its Mesaha block in Egypt, it added.
