BP Egypt Gains Two New Concessions
BP Egypt has been awarded exploration rights in the South Abu Zeneima and LL87 Blocks, located in the offshore Gulf of Suez in two different bid rounds. The two agreements were signed by H.E. Eng. Sameh Fahmy, Minister of Petroleum, Mr. Ibrahim Saleh, chairman of EGPC and Mr. Hesham Mekawi, president of BP Egypt on January 15, 2003.
The first concession is the South Abu Zeneima Block with an area of about 150 sq. km., lying east of the giant October field and close to existing infrastructure. The initial period of the concession is three years, with two optional extension periods of three years each. "We are committed to drilling at least one well and to spend a minimum of $7 million during the initial exploration period with the potential to drill two more wells and spend an additional $10 million during the extension periods," states Hesham Mekawi, president of BP Egypt. BP Egypt also plans to acquire 3D seismic for the block during the second half of January 2003 to allow drilling the first well later in the year.
The second concession is the LL87 Block with an area of 15 sq. km., lying between East Shukheir Marine and the Merged concession, east of the new Edfu field. The initial period of the concession is one year with one extension period of two years. "In this concession, we are committed to drill at least one well and to spend a minimum of $5 million during the initial exploration period with the potential to drill one additional well and to spend an additional $5 million during the extension period. We plan to drill the Saqqara-1 well in this block this month as soon as the rig becomes available," says Mekawi.
During 2003, BP Egypt plans to drill three exploratory wells in the Gulf of Suez and to complete the high resolution aeromagnetic survey of about 13,000 square kilometers in addition to a 3D seismic survey to cover the new leases. BP Egypt is also looking for other opportunities in the Gulf of Suez and bid for six other blocks in the Gulf of Suez and the Red Sea in November 2002. Results of these bids will be announced shortly.