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BP expands in Egypt with $240 million investment in two new exploration blocks

Release date: 10 November 2014

Award of blocks in the competitive 2013 EGAS bid round

 

CAIRO – BP Egypt has confirmed today that it has been awarded two new exploration blocks as a result of the 2013 EGAS bid round. BP and its partners have committed to invest a total of $240 million in the blocks over different phases.

 

Block 3 – North El Mataria is BP’s first entry into the Onshore Nile Delta. The block is located in the northeastern part of the Nile Delta cone, approximately 57km to the west of Port Said city. BP will operate the block with 50% equity and Dana Gas of Abu Dhabi will hold the remaining 50% working interest.

 

Block 8 - Karawan Offshore is located in the Mediterranean Sea, in the northeastern part of Egypt’s economic waters. The block lies at approximately 220km to the NE and 170km to the NW of Alexandria and Port Said cities respectively. BP will have 50% equity and the block will be operated by ENI which holds the remaining 50%.
 

 

The programme will include 3D seismic and three exploration wells in each of the onshore and offshore blocks in phases over 6-8 years.
 

Hesham Mekawi, BP North Africa Regional President, commented, “BP is proud of the successful partnership it has had with Egypt for 50 years. We look forward to continuing to play a key role in the development of Egypt’s energy sector and maximising the use of our existing resources. Our expertise and latest technologies will be deployed for mutual benefit in these new blocks which we believe have gas-bearing characteristics. Exploring the two blocks will require substantial investments to unlock their potential, and will be done as part of our commitment to meeting Egypt’s energy needs. We also look forward to working with our Abu Dhabi partners at Dana Gas.”

Further information

 

Contacts

 

BP London press office: 020 7496 4076, bppress@bp.com

Notes to Editors

 

  • 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.
  • 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% of Egypt’s entire oil production, and currently produces almost 10% of Egypt’s annual oil and condensate production.
  • In addition, through BP’s JVs with EGPC/EGAS and IEOC (ENI) the Pharaonic Petroleum Company (PhPC) and Petrobel currently produce close to 30% of Egypt's total gas 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
  • The West Nile Delta (WND) Major Project is a strategic project for BP and its partner RWE and is also extremely critical to Egypt as it would provide more than one billion cubic feet per day (25% of Egypt current production).
  • BP is a 33% shareholder of an 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%) 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.
  • Air BP, the global aviation division of BP also has a presence in Egypt, across the country’s airports, including the provision of technical services to Misr Petroleum.