BP has announced that it expects to invest around US$12bn with its local partners in a project to develop gas in the West Nile Delta (WND)
Announcing the signing of the deal late last week, the multinational oil and gas giant estimated there to be five tcf of gas and 55 mmbbls of condensates in the WND, which it expects to produce at a rate of up to 1.2 bcf/d.
If the predicted figures are accurate, the project will equate to around 25 per cent of Egypt’s current gas production, which will provide the country’s energy supply with a much-needed boost.
A rise in demand, coupled with a slump in production, has caused regular blackouts in recent years and left Egypt importing more energy than it exports.
BP said they expect production to commence in 2017, and added that all gas produced by WND will be fed directly into Egypt’s national grid, helping to meet the anticipated continued growth in energy demand in North Africa’s most populous nation.
Hesham Mekawi, president of BP North Africa, 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 said the gas will be produced from the North Alexandria and West Mediterranean Deepwater offshore concession blocks, which the company operates, adding that a further 5-7 tcf could potentially be added through future exploration.
