BP confirms winning 3 blocks in Egypt; $229mn investment planned

BP Egypt has been awarded three new exploration blocks in the state-run Egyptian Natural Gas Holding Company (EGAS)’s 2015 bid round, the company confirmed in a statement Wednesday.

BP and its partners have committed to invest a total of $229 million in the blocks over different phases.

The first block, North El Tabya, will be operated by BP at 100 per cent equity. It is located in deep waters north of BP’s recent discoveries Salamat and Atoll and covers an area of 2084 sq km.

The second block, North Ras El Esh, is located in shallow waters to the east of the Notus discovery covering an area of 1389 sq km. BP will have 50 per cent equity stake with IEOC (ENI subsidiary) as 50 per cent partner.  BP will also operate the block.

The third block, North El Hammad, is located in shallow water to the west of Baltim field covering an area of 1927 sq km and was awarded to BP at 37.5 per cent equity in partnership with Total at 25 per cent equity and IEOC, who will operate the block, with 37.5 per cent equity.

Hesham Mekawi, BP North Africa regional president, said: “BP is proud of the successful partnership it has had with Egypt for more than 50 years. Continuing to play a key role in the development of Egypt’s energy sector, BP will deploy its expertise and latest technologies to exploit the resources in these new blocks. This investment confirms our commitment to meet Egypt’s energy needs.”

Source: TradeArabia