BP Wins Two Exploration Blocks in Egypt, with $240mn Investments

UK-based oil and gas company British Petroleum (BP) has been awarded today two new exploration blocks as a result of state-owned Egyptian Natural Gas Holding Company (EGAS)’s 2013 bid round. BP and its partners have committed to invest a total of $240 million in the blocks over different phases.

Block 3 – North El Mataria is BP’s first entry into the Onshore Nile Delta. The block is located in the northeastern part of the Nile Delta cone, approximately 57km to the west of Port Said city. BP will operate the block with 50% equity and Dana Gas will hold the remaining 50% working interest.

Block 8 – Karawan Offshore is located in the Mediterranean Sea, in the northeastern part of Egypt’s economic waters. The block lies at approximately 220km to the NE and 170km to the NW of Alexandria and Port Said cities respectively. BP will have 50% equity and the block will be operated by ENI which holds the remaining 50%.

The programme will include 3D seismic and three exploration wells in each of the onshore and offshore blocks in phases over 6-8 years.

Hesham Mekawi, BP North Africa Regional President, commented, “BP is proud of the successful partnership it has had with Egypt for 50 years. We look forward to continuing to play a key role in the development of Egypt’s energy sector and maximising the use of our existing resources. Our expertise and latest technologies will be deployed for mutual benefit in these new blocks which we believe have gas-bearing characteristics. Exploring the two blocks will require substantial investments to unlock their potential, and will be done as part of our commitment to meeting Egypt’s energy needs.”

BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP’s business is primarily in oil and gas exploration and production.