BP eager on offshore Egypt gas project

BP is fast-tracking a deepwater gas project offshore Egypt following the signing of a heads of agreement with the Egyptian government, the super-major said on Thursday. The accelerated development schedule puts first gas at the Atoll field in the North Damietta concession in 2018.

BP’s plan calls for a two-phase development, with the first phase involving two wells tied into existing infrastructure. Each well is expected to produce around 5.66 mcm (200 mcf) of gas per day, intended for sale to the Egyptian market. A final investment decision on phase one is expected to be taken in 2016.

“Success of this first phase is expected to trigger additional investment and further wells to increase production,” the company said in a press release.

BP made the Atoll discovery in March 2015 using the semi-submersible Maersk Discoverer, which drilled the Atoll-1 well at a water depth of 923 metres and reached a total depth of 6,400 metres. The wildcat hit 50 metres of gas pay in high quality Oligocene sandstones. The field is estimated to contain around 42.5 bcm (1.5 tcf) of gas and 31 million barrels of condensates.

BP owns a 100-percent operating interest in the North Damietta concession in the east Nile Delta. The entire block is estimated to hold more than 142 bcm (5 tcf).

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