BP increased its interest in the US$12 billion West Nile Delta (WND) project in Egypt after partner DEA farmed down its stake.
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Map of Nile Delta. From DEA. |
According to DEA, the deal includes the sale of a portion of DEA’s stake in the ongoing Phase 1 development of 5 Tcf of gas resources. WND is expected to produce 1.2 Bcf/d, representing 25% of Egypt’s current gas production. Gas will be produced from two offshore concession blocks: North Alexandria and West Mediterranean Deepwater. Production is slated to begin in 2017.
The agreement, which is pending approval of the Egyptian General Petroleum Corp. (EGPC), will leave DEA holding a remaining 17.25% in North Alexandria and West Mediterranean Deepwater. DEA formerly held 40% in North Alexandria, and 20% in West Mediterranean Deepwater.
The farm down is to balance DEA’s portfolio and to work closely with BP to restructure the partnership agreements to maximize the speed of decision making. By simplifying the DEA holdings to 17.25%, the efficiency of field cost management and allocation to different fields were improved, DEA said.
According to BP, there is the potential through future exploration to add an additional 5-7 Tcf, which could boost WND production with additional investments. The project will maximize and use existing infrastructure from the Taurus/Libra fields and the Giza/Fayoum and Raven fields, all operated by BP.
At the end of April, BP awarded OneSubsea a multi-million contract for subsea systems, including 10 large bore gas trees and related subsea equipment for the WND Taurus/Libra development. Taurus/Libra is a subsea development tied-in offshore 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 adjacent onshore plant for Raven.
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