BP $12 BLN DEAL
BP PLC and a local partner have signed final agreements for the West Nile Delta (WND) natural gas project in Egypt, whereby $12 billion will be invested to develop 5 tcf of gas resources and 55 million bbl of condensates.
Production from WND, expected to start in 2017, will peak at 1.2 bcfd, equivalent to about 25% of Egypt's current gas production, BP says. All produced gas will be fed into the country's national gas grid.
Gas will be produced from BP-operated offshore concession blocks North Alexandria and West Mediterranean Deepwater. BP believes future exploration could add 5-7 tcf, which would boost WND production with additional investments.
The project concept utilizes existing infrastructure. BP-operated Taurus and Libra fields will be a subsea development tied-in offshore to existing BG Group-operated Burullus facilities.
The BP-operated Giza-Fayoum and Raven fields are two deepwater long distance tie-backs to the shore, where the existing Rosetta plant will be modified for Giza-Fayoum and integrated with a new adjacent onshore plant for Raven.
"BP expects to double its current gas supply to the Egyptian domestic market during this decade when the WND project reaches its peak production," commented Hesham Mekawi, BP North Africa regional president.
BP holds 65% interest in the WND project.
The company says it produces 30% of Egypt's total gas through joint ventures with Egyptian General Petroleum Corp. (EGPC), Egyptian Natural Gas Holding Co. (Egas), Eni SPA subsidiary International Egypt Oil Co. (IEOC), Pharaonic Petroleum Co. (PHPC), and Petrobel.
"BP will also continue to invest in our existing oil operations at the Gulf of Suez through [Gulf of Suez Petroleum Co.] and gas operations in the East Nile Delta through Pharaonic Petroleum Co., as well as progressing our recently discovered resources to allow for the next new major development after WND," Mekawi said.
In November, BP and partners pledged to invest $240 million in two Egypt exploration blocks, awarded by Egas in its 2013 bid round, that demonstrate "gas-bearing characteristics." One marked BP's entry into the onshore Nile Delta.
The company has made a series of discoveries in Egypt in recent years, including Seth South and Salmon and Rahamat; Satis; Hodoa; Notus; Taurt North; and Salamat.
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