BP to invest $12 billion to develop Egypt’s West Nile Delta

British oil company BP expects to invest around $12 billion with its partners as part of a finalised West Nile Delta concession deal to develop 5 trillion cuabic feet of gas resources and 55 million barrels of condensates.

The supply deal 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 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.

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

Commenting on the project, Hesham Mekawi, BP North Africa Regional President said, “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.