BG Group admits the ongoing instability in Egypt has delayed the next phase of its West Delta Deep Marine project in the country.
The natural gas field, off the Egyptian coast, was due to begin begin nine new wells this year as part of a $1.5billion project aimed at developing the field and stemming production decline.
However, the company, already owed $1.3billion by the Egyptian government and forced to withdraw more than 100 staff from the country over safety fears, said the current disruption had put the project behind schedule.
“Due to the on-going political and social instability in Egypt, phase 9a of West Delta Deep Marine has suffered delay, resulting in first production commencing later than expected in 2014, provided no further disruption is caused to the programme,” the company said today.
Around 20% of BG Group’s output comes from Egypt, which saw earnings decline 3% in the last quarter because of production falls.
Meanwhile BG Group also said it expected first production on the Knaar field it operated in the Norwegian North Sea to be delayed until at least April next year.
“The group anticipates that the combined impact from Egypt and Norway in 2014 will be a reduction of approximately 30,000 barrels of oil equivalent per day,” it warned.
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