BP has signed the final agreements of the West Nile Delta project, which has an estimated investment of $12billion.
The project is set to develop 5 trillion cubic feet of gas resources and 55 million barrels of condensates.
Production from the project is expected to reach up to 1.2billion cubic feet per day (bcf/d), equivalent to about 25% of Egypt’s current gas production and significantly contribute to increasing the supply of energy in Egypt.
Bob Dudley, BP Group chief executive, said: “BP is proud of its record in Egypt over the past 50 years and we are looking forward to many more years in the country. The WND project investment is the largest foreign direct investment in Egypt, and demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. WND production is key to Egypt’s energy security.”
All produced gas will be fed into the country’s national gas grid, helping to meet the local growth in demand and energy.
Gas will be produced from two BP-operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater.
Hesham Mekawi, BP North Africa regional president said: “This is a critical milestone in the Egyptian oil and gas history. It marks the start of a major national project to add significant production to the domestic market. BP expects to double its current gas supply to the Egyptian domestic market during this decade when the WND project reaches its peak production.
“BP will also continue to invest in our existing oil operations at the Gulf of Suez (through GUPCO) and gas operations in the East Nile Delta (through Pharonic Petroleum Co.), as well as progressing our recently discovered resources to allow for the next new major development after WND.”
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