BG Pursues Two Offshore Egypt Gas Developments

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BG Group and its partners have submitted a development plan for the Notus high-pressure/high-temperature and Harmatten Deep gas discoveries in the Egyptian sector of the Mediterranean Sea.

The plan is in accordance with the El Burg offshore concession agreement. BG adds, however, that the release of funds for any further Egyptian development projects, including West Delta Deep Marine (WDDM) Phase 9b, remains contingent on an improvement in the local investment climate. It remains in discussions with Egypt’s government.

BG’s Egyptian fields produced a total of 57,000 boe/d for the company in 2Q 2014, down 14% from 1Q. This is a result of deteriorating reservoir performance and the continued high proportion of diversions to Egypt’s domestic market, where the company is entitled to a lower share of production.

The first WDDM Phase 9a well has come onstream, however the nine-well development will only temporarily offset underlying E&P production declines, the company says.

Source: PennEnergy