6th Mar 2015 10:08
LONDON (Alliance News) - BP PLC Friday said it has signed the final agreements for the West Nile Delta project in Egypt to develop 5 trillion cubic feet of gas and 55 million barrels of condensates by investing around USD12 billion with its partner.
Production from the project, due in 2017, is expected to reach up to 1.2 billion cubic feet per day, which is the equivalent of 25% of Egypt's current gas production and will "significantly contribute" to the country's energy supply, with all the gas from the project being fed to the national grid.
BP has a 65% stake in the project, but the partner has not been named.
"The West Nile Delta project investment is the largest foreign direct investment in Egypt, and demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. West Nile Delta production is key to Egypt's energy security," said Bob Dudley, BP chief executive.
Gas will be produced from two BP operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater, and BP said it believes it could add a further 5 to 7 trillion cubic feet to boost the project's production with further investment in the future.
"BP expects to double its current gas supply to the Egyptian domestic market during this decade when the West Nile Delta project reaches its peak production," said the company.
BP shares were down 0.6% to 449.70 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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