Jul 22 - Datamonitor



BP has signed a new agreement with the Egyptian Ministry of Petroleum and Egyptian General Petroleum to develop the significant hydrocarbon resources in the North Alexandria and West Mediterranean Deepwater concessions.

Production from the West Nile Delta development is projected to reach up to 1bcf/d, providing a major new source of gas for the domestic market in Egypt. The first phase will develop an estimated five trillion cubic feet of gas and associated condensate through subsea development of five offshore fields into a new purpose-built onshore gas plant on Egypt's Mediterranean coast. First gas is expected in late 2014.

The new agreement amends the commercial terms and the governance structure for the two concessions located in the West Nile Delta, enabling BP and its partner RWE Dea to proceed with development. The scale of investment and activities of the West Nile Delta Project is expected to create thousands of job opportunities during the different project phases and will significantly contribute to the growth of petroleum-related industries in Egypt.

Tony Hayward, CEO of BP, said: "This agreement unlocks a new phase in realizing the huge potential of the Nile Delta basin, which will play an important role in meeting regional energy security needs in the coming decades. BP and Egyptian General Petroleum have a long-standing and successful partnership, and the agreement we signed today takes that to a new level in developing these deepwater resources, as well as creating an important source of future growth for BP."

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