BP expects to invest approximately $12bn with its Egyptian partners as part of a finalised West Nile Delta (WND) concession agreement to develop five trillion cubic feet of gas resources and 55 million barrels of condensates.
Production from WND project is expected to begin in 2017 and reach up to 1.2 billion cubic feet a day, nearly 25% of Egypt’s existing gas production.
Gas will be produced from two offshore concession blocks, North Alexandria and West Mediterranean Deepwater, operated by BP. It will be fed into Egypt’s national gas grid.
BP currently owns around a 65% stake in the project partnership. The company said there is the potential via future exploration to add an additional five to seven trillion cubic feet, which could increase WND production with further investments.
The project will maximise and use existing infrastructure from the Taurus/Libra fields and the Giza/Fayoum and Raven fields, all operated by BP.
Taurus/Libra will be a subsea development tied-in to existing BG Group-operated Burullus facilities.
Giza/Fayoum and Raven are two deepwater long-distance tie-backs to the shore, where the existing Rosetta plant will be modified for Giza/Fayoum and integrated with a new nearby onshore facility for Raven.
BP Group chief executive Bob Dudley said: "The WND 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. WND production is key to Egypt’s energy security."
The company expects to double its existing gas supply to the Egyptian domestic market in this decade when the WND project reaches its peak production.
Image: BP Group chief executive Bob Dudley. Photo: courtesy of BP p.l.c.