Egypt: BP to Bring Raven Project Online by 2020 End - OFFSHORE ENGINEER

February 5, 2020

BP's phase three of the $12 billion West Nile Delta project offshore Egypt will come online by the end of this year, nearly 12 months behind the earlier scheduled deadline, the company said in a conference call this week.

The third phase includes the development of the Raven field, located in the offshore area encompassing five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks which BP is developing in phases.

“The Raven project in Egypt is now expected to come on stream around the end of 2020,” said BP during the quarterly results call. To remind, BP had in February 2019 said it would bring Raven online by the end of 2019.

Egypt- BP invests $2.7bn to develop North Alexandria's Giza and Fayoum gas fields - MENAFN / DAILY NEWS EGYPT

OCT/30/2019 8:10:12 PM

(MENAFN - Daily News Egypt) BP has invested $2.7bn to implement the second phase of the North Alexandria's Giza and Fayoum gas fields to produce about 680m cubic feet of gas per day (scf/day) during the last fiscal year.

A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that BP has started the implementation of the third phase of the Raven gas project to bring its total production output to 1.5bn scf/day early 2020.

He explained that the third and final phase of the project involves connecting 850m scf/day from the Raven field in the deep water in the Mediterranean Sea, with an average production rate of 350m scf/day.

A gas processing plant, which will receive the output of Raven field, is under construction, with a capacity of 900m scf/day, he said.

The source pointed out that the natural gas produced from the Raven field has special specifications different from the previous two stages of Libra, Torres, Giza, and Fayoum fields, and the new treatment plant is being built next to Rashid treatment plant.

BP to Redirect Focus From Oil Assets in Egypt to Gas Reserves - YAHOO FINANCE / ZACKS EQUITY RESEARCH

June 5, 2019

BP plc BP recently announced its decision to divest Gulf of Suez oil concessions in Egypt to an upstream energy firm Dragon Oil. The value of the transaction has not been disclosed yet.

With the divestment, the British energy giant is planning to focus on gas reserves located off the coast of Egypt. The company has already produced first gas from the West Nile Delta development’s second stage. The project entails the production of natural gas from the Giza and Fayoum fields and the integrated energy firm expects peak production of 700 million cubic feet of gas per day.

BP commenced the first stage of the West Nile Delta project in 2017 and is expecting to start gas production from the final stage by the second half of 2019. Notably, in the first stage, BP developed the Taurus and Libra fields, while the final stage involves the development of the Raven field.

Overall, the West Nile Delta is a major upstream project and the company is expecting the full development — comprising the first, second and final stages — to produce roughly 20% of the current natural gas production volumes in Egypt. BP added that the national gas grid will utilize the entire gas being produced from the West Nile Delta.

BP Begins Gas Production From Phase 2 of West Nile Delta Project - SOCIETY OF PETROLEUM ENGINEERS

13 February 2019

Gas is flowing in the second phase of the West Nile Delta development offshore Egypt, operator BP reported this week. Production, currently at around 400 MMcf/D, is expected to reach 700 MMcf/D at peak.

Developed as a long-distance deepwater tieback to an onshore plant, the second phase includes eight wells producing from the Giza and Fayoum fields. The West Nile Delta project as a whole consists of five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concessions, 65–85 km off Alexandria.

Phase 1 of the project, launched last year, consists of gas production from the Taurus and Libra fields. The first two phases target gas in the Pliocene formations. A third phase developing the Raven field, which holds gas in the deeper Miocene formations, is also expected to come on stream this year.

Combined production from all phases of the West Nile Delta project is expected to approach 1.4 Bcf/D, equivalent to about 20% of Egypt’s current gas production. All of the gas produced will be fed into the country’s national gas grid, the operator said.

EGYPS Day 1 Highlights - ENTERPRISE

Tuesday, 12 February 2019

New, investor-friendly production-sharing agreements are in the spotlight as gov’t pushes Egypt as a regional energy hub. The three-day Egypt Petroleum Show, which got underway yesterday, is best thought of as the physical embodiment of the Sisi administration’s strategy to position Egypt as the premier eastern Mediterranean energy hub. Domestic and international media offered wall-to-wall coverage.

If you read nothing else, read this from Reuters: “Egypt’s gas output will get a boost this year as the country’s huge Zohr field nears peak production and with USD 1.8 bn in investment from BP, officials said on Monday, as Egypt returns to export markets and positions itself as a regional hub.” Egypt is leveraging its “strategic location and well-developed infrastructure to become a key international trading and distribution center for gas, a potentially remarkable turnaround for a country that spent about USD 3 bn on annual liquefied natural gas (LNG) imports as recently as 2016.”

Digging into the highlights from yesterday:

Egypt to test-run Giza, Fayoum gas fields - MENAFN

December 6, 2018, 8:56:59 AM

Egypt was announced to have decided to test-run Giza and Fayoum fields before this month ends, as part of a plan to boost natural gas output from deep waters.

The trial is to be launched with Egypt aiming to produce an average of 700 million cubic feet of gas a day from the fields by the first quarter of next year.

Since June this year, Egypt was able to see a 10 percent jump in its natural gas production to reach 6.6 billion cubic feet a day.

This increase was recorded after Egypt imposed hikes on production at Zohr offshore gas field for it to stand at 2 billion cubic feet per day.

The country is looking to see its gas production surge to hit 6.75 billion cubic feet per day before this year comes to an end, with a target to turn into an energy hub.

SDX, BP fail to reach agreement on Egypt assets - ENTERPRISE

Sunday, 21 October 2018

BP talks to sell Egypt assets to SDX fail. SDX Energy has “terminated” talks to acquire BP’s Egypt assets after failing to reach an agreement, the company said in a statement on Thursday (pdf). SDX gave no color on why the talks broke down. SDX Energy announced last month that it was in open talks with BP to acquire “a significant package of [its] assets in Egypt.” It was not not immediately clear which assets SDX hoped to acquire, but the company said the transaction would take the form of a reverse takeover, allowing SDX entry to the London Stock Exchange’s main market. BP had been said to be shopping for buyers since at least March as part of a plan to sell USD 2-3 bn’s worth of maturing assets this year.

BP isn’t exiting Egypt: The global oil major plans to invest USD 2 bn in Egypt next year, BP North Africa Regional President Hesham Mekawi told Al Shorouk in an interview last month. Among the assets in which it is investing is its Raven field, which is part of its West Nile concessions in Fayoum and Giza. The Raven gas field is expected to come online in 2H2019, a source from the Oil Ministry official told Youm7 on Thursday. Production is expected to reach 350 mcf/d of gas.

Gas production of North Alexandria, West Delta fields to start in Dec. - EGYPT TODAY

Tue, Sep. 25, 2018

CAIRO – The second phase of gas production at North Alexandria and West Delta fields will start next December, according to Minister of Petroleum Tarek el-Molla.

Molla clarified that production will reach 400 million cubic feet of gas daily at Giza and Fayoum fields, to gradually hit 700 million cubic feet/day.

This came during Molla’s periodic meeting with the High Joint Committee of the West Nile Delta Gas Project (BP, DEA).

He further noted that production at Revine gas field will begin during the third quarter of 2019, with 450 million cubic feet per day, gradually increasing to reach its maximum capacity of 900 million cubic feet of gas per day.

The minister emphasized the importance of fully adhering to the timetables set for the implementation of the second phase to ensure starting production at these fields on schedule, adding new quantities of natural gas to raise the rates of domestic production.

EastMed gas disputes could play into Egypt’s favor where European exports are concerned - ENTERPRISE

Sunday, 11 March 2018

Disputes over natural gas reserves in the Eastern Mediterranean could play into Egypt’s favor where exports to Europe are concerned, Yigal Chazan suggests in a piece for the Financial Times (paywall). The competition between Mediterranean neighbors over natural gas could “complicate plans to build pipelines linking producer countries to consumer markets,” he says, arguing that Egypt’s idle liquefaction plants “could offer Cyprus and Israel a cost-effective and secure distribution route to Asia, through the Suez Canal, and Europe.” Egypt’s Dolphinus Holdings has already inked an agreement that will see Egypt receive USD 15 bn-worth of Israeli gas. Cyprus is on its way to singing a similar-style pact with Cairo, which is gearing up to sign an agreement with the EU before mid-2018 that will see it export LNG through its liquefaction plants.

This comes as the Turkey-occupied Turkish enclave of Cyprus threatened to throw fuel to the fire. Its so-called "Foreign Minister" Kudret Ozersay said that they would launch their own exploration efforts if the internationally recognized Cyprus government doesn’t sit down for negotiations, Reuters reports.

On a related note, Egypt will soon be at liberty “to fish for the next giant cache to satisfy its growing domestic appetite” for LNG, with Eni close to finalizing work on Zohr and BP wrapping up its activities in Atoll and the Giza and Fayoum concessions, says Upstream Online.

5 projects achieve natural gas self-sufficiency for Egypt in 2018 - DAILY NEWS EGYPT

January 29, 2018

The Ministry of Petroleum aims to increase its production of natural gas by working to make five gas projects operational, on top of which comes the completion of Zohr gas field’s first phase and beginning the second phase of the Northern Alexandria West Delta deep field.

The ministry plans to complete the first phase of Zohr development project in the deep waters of the Mediterranean in June, and for production to gradually reach over 1bn cubic feet of gas per day, up by some 700m cubic feet per day now, after announcing early production from the well.

The giant Zohr field is among the most important discoveries achieved by the petroleum sector in recent years. The find was made by the Italian company Eni in August 2015, with reserves of some 40tn cubic feet of gas. It is expected to help Egypt surpass its sharp gap in energy supplies. The first phase of the project costs about $5bn.

West Nile Delta Phase 2 gas fields to produce 500-700 mmcf/d by 2018 - ENERGY EGYPT / ENTERPRISE / MUBASHER

November 8, 2017

The Oil Ministry is expecting the West Nile Delta (WND) gas fields – Giza and Fayoum – to produce 500-700 mmcf/d (TEKMOR Note: approx 0,2 tcf per year) when they come online by the end of 2018, the ministry said in a statement.

More West Nile Delta gas fields to begin production late 2018

The Egyptian minister of petroleum said that natural gas production from the second phase of the West Nile Delta (WND) project will begin by the end of 2018.

Tarek El Molla added that fields including Giza and Fayoum will have a production capacity ranging between 500 and 700 million cubic feet per day (mmcf/d).

Production is set to reach 1.6 billion cubic feet per day, with a 70-kilometer pipeline currently under construction.

It was previously reported that the fields are expected to cover around 25% of Egypt’s gas demand upon completion.

According to Al Ahram, gas extraction from the West Nile Delta fields is carried out in cooperation with British Petroleum (BP) and Germany’s DEA group.

LNG production from Giza, Fayoum fields to reach 500 mln cfpd by end of 2018 - AHRAM ONLINE

Friday 22 Sep 2017

Egypt’s Minister of Petroleum Tarek El-Molla announced on Friday that liquified natual gas (LNG) production from the Giza and Fayoum fields will reach 500-700 million cubic feet per day (cfpd) by the end of 2018.

El-Molla’s statement came during the seventh regular meeting of the committee responsible for following progress of the second phase of the West Delta gas fields on Friday.

Earlier this week, the minister revealed that Egypt is planning to reduce its LNG imports in the fiscal year 2017-18, thanks to expected production from the Zohr gas field, with imports restricted to 80 shipments worth $1.8 billion.

Production from Shell’s Burullus gas fields rises to 526 mmcf/d in past year - ENERGY EGYPT

September 5, 2017

Production from Shell’s Burullus concession increased to 526 mmcf/d and over 6,000 bbl of condensates last year, Chairman of Shell JVs Rashpetco and Burullus Hisham Al Attar said, according to a statement from the Oil Ministry. Al Attar says that design and manufacturing works have been contracted on the West Delta Deep Marine Phase 9b project, but a contractor is yet to be picked. Rashpetco is set to drill two new exploration wells in 1Q2018, he adds, without specifying their location.

Chairman of Rashid Petroleum Company (Rashpetco) Hisham Al-Attar said that Burullus fields’ natural gas output rose to 526 million square feet per day and more than 6,000 barrels of condensates.

Production at the second phase development of the West Delta fields to begin in 2018 - ENTERPRISE

Thursday, 24 August 2017

Production at the second phase development of the West Delta fields, which will include the Giza and Fayoum fields, is expected to begin in 2018, Oil Minister Tarek El Molla said on Wednesday. The remarks came during a meeting with Thomas Rappuhn, CEO of Germany’s DEA, which owns a 17.25% share in the project. Production had initially been slated for 2019. 

Separately, El Molla met with Malaysian company Petronas’ Vice President Adnan Zainal Abidin to discuss the company’s projects in Egypt. Petronas and Royal Dutch Shell will begin work on phase 9B of the Borollos gas field in 4Q2017, after having halted work last year over disagreements on prices with the government.

Can Egypt’s Natural Gas Production Be Doubled By 2020? - HART ENERGY / STRATAS ADVISORS

Wednesday, July 26, 2017 - 12:18pm

This excerpt is from a report that is available to subscribers of Stratas Advisors’ Global Hydrocarbon Supply and Global Upstream Project Analytics services.

Egypt is the third largest natural gas producer in Africa and holds about 65 Tcf of proved natural gas reserves, according to the BP Statistical Review of World Energy 2017. But due to Egypt’s government paying low gas prices to foreign operators, it was getting more difficult to attract investments on developing new gas projects. Therefore, natural gas production had been under rapid decline from 5.9 Bcf/d in 2011 to 4.1 Bcf/d in 2016.

With significant natural gas reserves in the country, Egypt still needs to import natural gas from neighboring countries to satisfy domestic consumption, so Egypt’s government has agreed to pay a higher price to the foreign operators and encourage them to develop new natural gas discoveries, especially fields in the deepwater Mediterranean Sea and Nile Delta.

El Molla confirms acceleration of West Nile Delta Phase 2 - ENERGY EGYPT / ENTERPRISE / AL MASRY AL YOUM

June 14, 2017

The Petroleum Ministry is committed to start production from phase two of BP’s West Nile Delta (WND) concession ahead of the 2019 scheduled date, Petroleum Minister Tarek El Molla said, according to Al Masry Al Youm.

BP wants to bring the development’s Fayoum and Giza fields on stream end of 2018, with a daily production of 400 mcf, Regional President for North Africa Hesham Mekawi said. Production at Raven field should begin in 2019 at 350 mcf/d, he added. BP’s Taurus and Libra fields in the WND’s phase one had come onstream last month, eight months ahead of schedule.

BP to bring Fayoum, Giza concessions on stream ahead of schedule - ENTERPRISE / YOUM7 / OFFSHORE TECHNOLOGY

Thursday, 16 March 2017

BP is reportedly bringing the Fayoum and Giza natural gas fields (see North Alexandria Concession) into production ahead of schedule in November, Oil Ministry sources tell Youm7.

The fields were initially slated to come on stream in 1Q19. BP is expected to produce 400 mcf/d from the concessions.

West Nile Delta (WND) Project involves the development of gas and condensate fields located within the North Alexandria (N Alex) and West Mediterranean Deepwater concessions in the Mediterranean sea, approximately 65km to 85km off the coast of Alexandria, Egypt.

Subsea 7 engineering teams start on Atoll project offshore Egypt - OFFSHORE MAGAZINE

March/02/2017
Offshore staff

LUXEMBOURG – Subsea 7 says the last stage of the offshore campaign is under way in the Egyptian sector of the Mediterranean Sea for Phase One of the West Nile Delta project on the Taurus and Libra fields.

Fabrication has started for Phase Two on the Giza, Fayoum, and Raven fields. The company’s work on the East Nile Delta project is substantially completed and its engineering teams have mobilized for the newly awarded Atoll project.

Offshore Brazil, the last of the company’s newbuild Brazilian PLSVs, Seven Cruzeiro, started a long-term contract in January.

In the UK North Sea, preparations have continued for installation of pipeline bundles for the Culzean, Callater, and Western Isles projects.

Subsea 7 is cautiously optimistic about future prospects. It says the oil and gas market has achieved a degree of stability in recent months and there are indications that project sanctions will increase.

Shell offers Rosetta concession for sale - DAILY NEWS EGYPT

Tuesday December 20, 2016

Mohamed Adel

The government owes Shell $1.3bn for their share of the gas field, says source

The Dutch Shell Company has offered the Rosetta concession in Rashid for sale to any foreign company.

A source close to the company told Daily News Egypt that Shell decided not to carry out any development operations in Rosetta. “Development will be expensive with almost no economic feasibility, considering the price of gas produced there,” he explained.

He said the Rosetta field currently produces 40 million cubic feet of gas per day and will stop producing by July as the natural decay of productivity is not offset by development.

BP to produce 600 mcf/d from North Alexandria concession by June - ENTERPRISE / AL BORSA

Sunday, 18 December 2016

BP expects to begin producing 600 mcf/d of natural gas from its North Alexandria offshore concession by June, Al Borsa reported. 

The Fayoum and Giza fields are expected to come on stream in 1Q2019 and will produce at 400 mcf/d, BP’s ‎North Africa Regional President Hisham Mekawi said. 

He added that the Raven field should also begin producing around 350 mfc/d by 3Q2019.