Egypt makes gas deal with BP and RWE

The Egyptian Ministry of Petroleum and the Egyptian General Petroleum Corporation have announced they have signed an agreement with BP to develop the significant hydrocarbon resources in the North Alexandria and West Mediterranean deepwater concessions.

BP, and its partner in the project RWE Dea, are expected to be investing US$3.6 billion into the field development in the North Alexandria and West Mediterranean Deep Water areas, making it the biggest single investment for RWE to date.

With reserves of more than 50 billion cubic metres of natural gas (RWE Dea share), the fields in the North Alexandria and West Mediterranean Deep Water concessions are among the largest in the company's portfolio.

Rapid production

"Our aim is to proceed with this field development at a rapid pace, so that we can go into production by 2014," said Thomas Rappuhn, Chief Executive Officer of RWE Dea AG. "Amongst other field development projects of RWE Dea, such as Breagh in the United Kingdom and Gjøa in Norway, North Alexandria will make a substantial contribution to the company's growth target, which is to double production over the next five years."

The first phase of the project will see the development of an estimated 5 trillion ft3/d and associated condensate through the 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 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.

The North Alexandria and West Mediterranean Deep Water concessions are located in the offshore region of the West Nile Delta, some 40 kilometres off the coast of Egypt.

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