Egypt Awards BP Two New Exploration Blocks
BP reported Monday that it has been awarded two new exploration blocks as a result of Egypt's 2013 EGAS bid round. BP said it and its partners have committed to invest a total of $240 million in the blocks over different phases.
Block 3 (North El Mataria) will represent BP's entry into the onshore Nile Delta. The block is located in the northeastern part of the Nile Delta cone, approximately 35 miles to the west of Port Said city. BP will operate the block with a 50-percent equity participation, while Abu Dhabi's Dana Gas will hold the remaining 50-percent interest.
Block 8 (Karawan Offshore) is located in the Mediterranean Sea in the northeast part of Egypt's waters, some 135 miles to the northeast of Alexandria. BP will also hold a 50-percent interest here while Italy's ENI will hold the remaining 50 percent.
The program for the two blocks will include 3D seismic data acquisition and three exploration wells in each block over a six-to-eight year period.
BP North Africa Regional President Hesham Mekawi commented in a company statement:
"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 maximizing 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. We also look forward to working with our Abu Dhabi partners at Dana Gas."
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