BP SIGNS DEAL WITH EGYPT TO ACCELERATE ATOLL GAS DISCOVERY DEVELOPMENT
BP announced on Thursday it has signed a Heads of Agreement (HoA) with the Egyptian Minister of Petroleum Tarek El Molla meant to accelerate the development of the Atoll gas discovery, in which the British company holds a 100% interest.
“We are pleased to be making rapid progress towards the development of Atoll less than eight months after the announcement of its discovery. This is further demonstration of our continued confidence in Egypt – a key growth area for BP – and our commitment to continue to invest to unlock its energy potential” BP Group Chief Executive Bob Dudley commented in a note.
The Atoll discovery in the North Damietta Offshore Concession in the East Nile Delta, offshore Egypt was announced in March 2015. Full field development of Atoll is expected to consist of two phases. According to BP, the first phase will consist of two development wells tied back to existing infrastructure, with production expected to start up in 2018.
BP said that the decision, coupled with other initiatives, will help the country meet its energy needs.
‘Development of Atoll will be executed and operated by Pharaonic Petroleum Co. (PhPC), BP’s joint venture with EGAS and Eni.’
The cooperation between Eni and BP should intensify over the next months.
‘BP … expects to continue to invest in its existing oil operations led by its joint venture Gulf of Suez Petroleum Co. (GUPCO) and gas operations led by the Pharaonic Petroleum Co. (PhPC) joint venture, as well as continuing to progress its exploration program in the Nile Delta.’
During a parliamentary hearing in Rome, Eni’s CEO Claudio Descalzi reported about his meeting with Israeli Prime Minister Benjamin Netanyahu.
According to Italian media, he said that the two discussed how “join forces and pull together these resources (in the Eastern Mediterranean), which are not only Egyptian, but also Israeli and Cypriot.”
Earlier this month, Egypt's President Abdel Fattah el-Sisi approved six new oil and gas exploration contracts in the Mediterranean, Nile Delta, Western Desert and the Gulf of Suez. The companies involved - BP, Edison, Eni, Total - are expected to invest at least $2.2bn.
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Source: http://www.naturalgaseurope.com/bp-egypt-atoll-gas-discovery-development-26184
