BP confirms plans to develop Egypt’s West Nile Delta gas fields

BP has announced that it has signed the final agreements of the West Nile Delta project to develop 5 trillion ft3 of gas resources and 55 million bbls of condensates with an estimated investment of around US$12 billion by BP and its partner. The project underlines BP’s commitment to the Egyptian market and is a vote of confidence in Egypt’s investment climate and economic potential.

Egyptian production

Production from WND is expected to reach up to 1.2 billion ft3/d, equivalent to about 25% of Egypt’s current gas production and significantly contribute to increasing the supply of energy in Egypt. All the produced gas will be fed into the country’s national gas grid, helping to meet the anticipated growth in local demand for energy. Production is expected to start in 2017.

“BP is proud of its record in Egypt over the past 50 years and we are looking forward to many more years in the country. The WND project investment is the largest foreign direct investment in Egypt, and demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. WND production is key to Egypt’s energy security,” said Bob Dudley, BP Group Chief Executive.

Gas will be produced from two BP-operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater. BP believes that there is the potential through future exploration to add a further 5 - 7 trillion ft3, which could boost WND production with additional investments.

Critical milestone in the Egyptian oil and gas history

Commenting on the project, Hesham Mekawi, BP North Africa Regional President said, “This is a critical milestone in the Egyptian oil and gas history. It marks the start of a major national project to add significant production to the domestic market. BP expects to double its current gas supply to the Egyptian domestic market during this decade when the WND project reaches its peak production. BP will also continue to invest in our existing oil operations at the Gulf of Suez (through GUPCO) and gas operations in the East Nile Delta (through Pharaonic Petroleum Co.), as well as progressing our recently discovered resources to allow for the next new major development after WND.”

The scale of investment and activities of the WND project are expected to significantly contribute to the growth of petroleum-related industries and to Egyptian employment. During the construction phase, the project is projected to employ thousands of direct and indirect personnel. In line with BP’s commitment to support the development of Egyptian capability, the WND project will encourage technology transfer and know-how through training and on-the-job development. This will help to create strategic national capabilities to unlock the country’s future hydrocarbon potential.

Social investment programme

As part of the WND project, BP will also undertake a social investment programme directed to various sustainable development projects in co-ordination with the local communities and utilising local service providers.

This will be in addition to the project’s principal approach, which is focused on increasing local labour, with a commitment to employ significant local labour during operations.


Adapted from press release by Cecilia Rehn

Published on 06/03/2015


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