BP has invested extra money in Egypt than wherever else within the final two years, CEO says

BP’s Dudley praised the “strong set of reforms” that had been implemented in Egypt in recent years.

“We’ve seen this big change over the last four or five years that has fundamentally changed things. You go back, five or seven, eight years ago and electricity wasn’t even assured each day and now the infrastructure’s here … You’re actually seeing Egypt move from a producing country into one that’s going to begin to export energy as well and become a Mediterranean hub, it’s very exciting.”

BP announced the first gas production from the second stage of its large gas venture in Egypt, the West Nile Delta development, on Monday.

Stage one of the project, which started producing in 2017, included gas production from the first two fields, Taurus and Libra. The second phase of the project — the Giza and Fayoum development — includes eight wells and is currently producing around 400 million cubic feet of gas per day (mmscfd) and is expected to ramp up to a maximum rate of approximately 700 mmscfd. The third stage of the West Nile Delta project will develop the Raven field and production is expected in late 2019, BP said in a statement Monday.

When fully onstream in 2019, combined production from all three phases of the West Nile Delta project is expected to reach up to almost 1.4 billion cubic feet per day (bcf/d), equivalent to about 20 percent of Egypt’s current gas production. All the gas produced will be fed into the national gas grid. BP has an operating stake of 82.75 percent in the development, the company noted.

Asked how much BP could spend in Egypt in 2019, Dudley said the amount would be significant. “There will be a third phase we’re spending on, we’re exploring today with other companies … (So we’ll be spending) $1.8 billion give or take. That’s a lot,” he said.

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