GDF and BG to ink gas contract
CAIRO, November 17, 2014 – Gaz de France (GDF) and British Gas (BG) are expected to sign a new deal this week that will see the two entities agree on feeding around about 2.83 mcm (100 mcf) of natural gas per day to the West Delta processing plant, owned by BG. To that end, GDF has stated that it intends to raise production from the West Borollos field by 2018, and that a pipeline to the plant will be constructed upon the closure of the deal.
The signing of the contract is interpreted as a vote of confidence in the Egyptian oil and gas industry’s ability to process payment for international operators, as investments have been withheld in the offshore gas development sector over the past few years because of accrued dues by the national government to offshore operators for gas production. It was reported on Thursday that the Ministry of Petroleum intends to fully commit to payment of all outstanding dues – $4.9 billion – within six months.