BP Launches Offshore Gas Exploration Programme in Egypt

Strategic Insights -

BP, one of Egypt's most significant strategic partners in natural gas production, has launched a new offshore gas exploration programme in the country. The programme aims to accelerate the development and production of Egypt's offshore gas reserves while maximising the use of existing infrastructure in the West Nile Delta. The agreement covers the drilling of five natural gas wells in BP's Mediterranean concessions, at depths ranging between 300 and 1,500 metres.

Key Takeaways:

  • The new drilling contract, signed between BP and the Egyptian Natural Gas Holding Company (EGAS), covers the drilling of five natural gas wells in BP's Mediterranean concessions, at depths ranging between 300 and 1,500 metres.
  • Operations will be carried out using the deepwater drilling rig DS-12, owned by Valaris, and are scheduled to commence in 2026.
  • The programme aims to accelerate the development and production of Egypt's offshore gas reserves while maximising the use of existing infrastructure in the West Nile Delta.
  • The agreement follows a memorandum of understanding signed last month in London between EGAS and BP, under the auspices of the Minister of Petroleum, to implement the company's new drilling plan in Egypt.
  • Minister Karim Badawy described the new partnership as a "strategic milestone" in BP's investments for the current decade.
  • BP's Regional President for the Middle East and North Africa, Nader Zaki, expressed pride in the company's long-standing partnership with Egypt and called the new agreement a "strategic milestone".
  • The deal will enable BP to develop additional gas resources in the Nile Delta and bring them onstream swiftly to meet growing domestic demand.
  • The use of the DS-12 rig will allow BP to optimise results from recent discoveries and sustain gas production from the West Nile Delta beyond 2030, contributing to Egypt's long-term energy security.

Statistics:

  • The drilling contract covers five natural gas wells in BP's Mediterranean concessions at depths ranging between 300 and 1,500 metres.
  • Operations will be carried out using the deepwater drilling rig DS-12, owned by Valaris.
  • The programme is scheduled to commence in 2026 and will include sidetrack, development, and exploration wells.
  • The agreement follows a memorandum of understanding signed last month in London between EGAS and BP, under the auspices of the Minister of Petroleum.
  • BP plans to develop additional gas resources in the Nile Delta and bring them onstream swiftly to meet growing domestic demand.

Sources:

  • Minister of Petroleum and Mineral Resources Karim Badawy
  • BP
  • Egyptian Natural Gas Holding Company (EGAS)
  • Valaris
  • Harbour Energy
  • Daily News Egypt
  • SyndiGate Media Inc.