BG Egypt Signs Concession For North Sidi Kerir Deep Offshore Block

BG Egypt Signs Concession For North Sidi Kerir Deep Offshore Block

BG Egypt and its partner Petronas Carigali Overseas on 17 July signed a concession agreement for Egypt’s North Sidi Kerir Deep Offshore oil and gas block. BG will be operator and each partner will hold 50% of the license. The North Sidi Kerir Deep Offshore lies in the Mediterranean off the Nile Delta and adjacent to the West Delta Deep Marine (WDDM) where BG and Malaysia’s Petronas are also partners. The agreement calls for three wells to be drilled over an eight-year exploration period. The 1,949 sq km concession was awarded to BG and Petronas in 2005 and recently ratified by Egypt’s National Assembly. Water depths in the block range from 1,000-2,000ms. BG plans to acquire 3D seismic in 2007 and will drill its first well in 2008. BG has operated in Egypt since 1989 and with partners has invested some $4bn in the country’s gas industry. It operates the largest share of Egypt’s gas production, accounting for 40% of country output. BG Egypt is expected to play a role in supplying the planned second 5mn tons/year LNG train for Damietta, operated by the Spanish Egyptian Gas Company (SEGAS), a joint venture between Italy’s Eni and Spain’s Union Fenosa (MEES, 26 June, 4 April 2005).