Ahead of a high profile international investment conference in Egypt’s Sharm el-Sheikh, BP announced a major new gas discovery in the country, as well as confirmation of a $12 billion project to develop gas resources in the West Nile Delta
With roots in Egypt since the early 1960s, BP has invested more than $25 billion in the country and is one of its largest foreign direct investors. Now, just four years after the country’s far-reaching revolution, BP’s largest investment in Egypt to date highlights its commitment to unlocking the nation’s energy potential. The West Nile Delta (WND) agreement, signed in March 2015, enables BP and its partner to develop five trillion cubic feet of gas resources and 55 million barrels of condensate in the North Alexandria and West Mediterranean Deep Water areas. The project envisages peak production of 1.2 billion cubic feet of gas a day, equating to a quarter of Egypt’s current gas production. First gas is expected in 2017. WND will see BP double its current gas supply to the Egyptian domestic market, with investments of approximately $12 billion.
In numbers: five decades of a growing business and nation
Five decades of business
“BP’s commitment to Egypt and to building longstanding Egyptian partnerships is a principle that we never waver from,” says Hesham Mekawi, BP North Africa regional president. “It has led to uninterrupted business performance for 50 years, including through two revolutions. “This critical milestone in Egyptian oil and gas history marks the start of a mega national project to add significant production to the domestic market. We look forward to continuing to play a key role in the development of Egypt’s energy sector and helping meet the country's growing energy demands for years to come.” BP also announced the discovery of an estimated potential of five trillion cubic feet of gas with its Atoll-1 well in the North Damietta concession in the East Nile Delta, its second significant discovery there since Salamat in 2013.
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The number of scholarships granted to Egyptian students, based on academic merit and financial need
Working in partnership
Through its joint venture interest in the Gulf of Suez Petroleum Company (GUPCO), BP collaborates in the production of 10% of Egypt’s current oil/condensate output. In addition, its Pharaonic Petroleum Company (PhPC) and Petrobel JVs produce 30% of Egypt’s total gas production. The business also has a downstream presence through its Castrol lubricants brand and activities to commercialise natural gas for vehicles; and a 33% share in a natural gas liquids plant. BP is active in the domestic marine and aviation fuel sectors, as well. BP Egypt also invests long-term in people. Focusing on youth development, education and training, the business supports Egyptian students at several leading academic institutions including the University of Cambridge. BP also supports several local non-governmental organisations and staff volunteer in Egyptian state schools.
West Nile Delta
WND is BP’s first operated project in Egypt outside of a joint venture. The agreement to develop resources in the area covers five fields in the North Alexandria and West Mediterranean Deep Water concessions. The complex 21-well development will tie-in to existing, upgraded and new infrastructure and target gas and condensate in the Giza, Fayoum, Raven, Taurus and Libra fields, located between 65 and 85 kilometres offshore, in waters up to 750 metres deep. All the gas from WND will go into the national gas grid, helping to meet Egypt’s projected growth in demand. This large-scale development is also set to create thousands of jobs during its construction phase.