British energy giant BP has finalised the acquisition of shares of two offshore concessions in Egypt, whereby the company now owns 22.75% in the North Alexandria concession, as well as 2.75% in the West Mediterranean Deep Water Concession, a statement by the company read.
By sealing the deal, BP has succeeded in obtaining those shares from Hamburg-based DEA Deutsche Erdoel AG, where DEA was quoted on its official website as saying that the company’s “share in all West Nile Delta (WND) fields is now equalised at 17.25%. The share reduction was part of the company’s portfolio optimisation”.
“The acquisition will bring BP’s working interest in both concessions of the WND Project to 82.75%,” the BP statement indicated.
The WND project agreement was finalised in March of this year. The agreement entails that production from WND is anticipated to be equal to approximately 25% of Egypt’s actual gas production, with production expected to reach 1.2bn cubic feet per day (bcf/d).
Gas production is anticipated to take place starting 2017, whereby the gas output is planned to be directly injected into Egypt’s national gas grid.
Further BP shall develop 55m barrels of condensates in addition to 5tr cubic feet of gas resources from WND.
In March, and during Egypt’s Economic Development Conference (EEDC) that took place in Sharm El-Sheikh, Egypt and BP signed an agreement worth $12bn to invest in WND gas project.
The agreement is considered one of the biggest investment agreements in the history of Egypt.
BP is one of the largest investors in the Egyptian energy sector, whereby the company’s business in the country is primarily in oil and gas exploration and production.