BP Inks US$12bn Deal with Egypt to Develop Gas Supply

British oil company BP (BPL) has signed today in Sharm el-Sheikh US$12 billion deal with Egypt in order to develop 5 trillion cubic feet of gas resources and 55 million barrels of condensates in the West Nile Delta according to Economic Times.

The supply deal, signed at an international investment conference in the Sharm El-Sheikh resort, will help Egypt as it tackles its worst energy crisis in decades.

Rising energy consumption and decreasing production have turned it from a net energy exporter to a net importer in the last few years and caused persistent blackouts.

BP has said that production from the project was expected to reach up to 1.2 billion cubic feet a day, equivalent to about 25 percent of Egypt’s current gas production.

BP said it had about 65 percent equity in the project partnership. Production is expected to start in 2017.