UK oil and gas giant BP has expanded its foothold in Egypt by acquiring an additional stake in the West Nile Delta (WND) project from Hamburg-based DEA Deutsche Erdoel AG. BP is the operator of the WND project in which it now owns 82.7% stake.
In May 2015, DEA agreed with its joint venture partner in the project BP to farm down its WND stake in order to balance its portfolio.
The deal included the sale of a portion of DEA’s stake in the ongoing Phase 1 development of five trillion cubic feet of gas resources whereby DEA keeps remaining interest of 17.25%.
The farm-down has now been completed following the approval of the Egyptian General Petroleum Corporation (EGPC) and Egyptian Ministry of Petroleum.
With this deal, BP acquired 22.75% in the North Alexandria Concession and 2.75% in the West Mediterranean Deep Water Concession. The acquisition will bring BP’s working interest in both concessions of the West Nile Delta project to 82.75%.
The project is scheduled to start production in 2017. The WND fields are expected to produce 1.2 billion cubic feet per day, which constitutes approximately 25 percent of Egypt’s current gas production.
“For DEA, this is another step forward in streamlining our portfolio. On the one hand, we balance our exposure, on the other hand we grow by adding production and opportunities, like currently in Norway,” said Thomas Rappuhn, CEO of German-based DEA Deutsche Erdoel AG.
Commenting on the deal, Hesham Mekawi, BP North Africa Regional President said: “We are pleased to be increasing our interest in the WND project, which is a strategic project for BP and will play a key role in helping to secure Egypt’s energy supply for many years to come. This deal is another example of our commitment to help unlock Egypt’s oil and gas potential through continued investments.”
Offshore Energy Today Staff