09 December 2015
BP Egypt has announced today the completion of its acquisition of 22.75 per cent in the North Alexandria Concession and 2.75 per cent in the West Mediterranean Deep Water Concession from Hamburg-based DEA Deutsche Erdoel AG. The acquisition will bring BP's working interest in both concessions of the West Nile Delta Project to 82.75 per cent.
The West Nile Delta project agreement, concluded in March 2015, involves the development of 5 trillion cubic feet of gas resources and 55 million barrels of condensates. Production from WND is expected to be around 1.2 billion cubic feet a day (bcf/d), equivalent to about 25 per cent of Egypt's current gas production. All the produced gas will be fed into the country's national gas grid. Production is expected to start in 2017.
Commenting on the deal Hesham Mekawi, BP North Africa Regional President said, "BP is proud of the successful partnership it has had with Egypt for more than 50 years, and its role in the development of Egypt's energy sector.We are pleased to be increasing our interest in the WND project, which is a strategic project for BP and will play a key role in helping to secure Egypt's energy supply for many years to come. This deal is another example of our commitment to help unlock Egypt's oil and gas potential through continued investments."
BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP's business is primarily in oil and gas exploration and production. BP is working to meet Egypt's domestic market growth by actively exploring in the Nile Delta and investing to add production from existing discoveries.
To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP's joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40 per cent of Egypt's entire oil production, and currently produces almost 10 per cent of Egypt's annual oil and condensate.
In addition, through joint ventures with EGPC/EGAS and IEOC (ENI) the Pharaonic Petroleum Company (PhPC) and Petrobel BP currently produces close to 30 per cent of Egypt's total gas.
The West Nile Delta (WND) Project is a strategic project for BP. BP is the operator of the project. BP has made a series of discoveries in Egypt in recent years including Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus, Salamat and Atoll.
BP is a 33 per cent shareholder of a natural gas liquids (NGL) plant extracting LPG and propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).
BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40 per cent) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.
For further information, please contact:
Media Relations Manager
Trans - Arabian Creative Communications (TRACCS)
Mobile: 010 0900 2207
BP Egypt office: +202 2519 9915
BP Press Office, London: +44 (0)207 496 4076, email@example.com
© Press Release 2015