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The supply deal will help Egypt as it tackles
its worst energy crisis in decades. Rising energy consumption
and decreasing production have turned it from a net energy
exporter to a net importer in the last few years and caused
persistent blackouts.
BP said on Friday that production from the project was expected
to reach up to 1.2 billion cubic feet a day, equivalent to about
25 percent of Egypt's current gas production.
BP said it had about 65 percent equity in the project
partnership. Production is expected to start in 2017.
BP North Africa Regional President, Hesham Mekawi said: "BP
expects to double its current gas supply to the Egyptian
domestic market during this decade when the WND (West Nile
Delta) project reaches its peak production."
BP said gas would be produced from two BP-operated offshore
concession blocs, North Alexandria and West Mediterranean
Deepwater. The firm said it believed there was the potential for
future exploration to add a further 5-7 tcf which could boost
WND production with additional investments.
BP also said that production from its Taurus and Libra gas
fields would be channeled via BG Group’s <BG.L> existing
offshore pipeline network, serving its Burullus concession, into
the Egyptian grid.
The head of BG had told Reuters in December that the company was
in advanced talks that could boost supplies to power-hungry
Egypt by allowing rival BP to use its pipelines.
(Reporting by Kate Holton and Yara Bayoumy; editing by Oleg
Vukmanovic and Jane Merriman)
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