BP Egypt Gains Two New Concessions

BP Egypt has been awarded exploration rights in the East Warda Block located in the offshore Gulf of Suez and Blocks 12 and 13 in the Northern Red Sea. H.E. Eng. Sameh Fahmy, Minister of Petroleum and Eng. Hesham Mekawi, BP Egypt President and General Manager, signed the two agreements.

The first concession is the East Warda Block with an area of about 545 square kilometers (sq. km), lying north of the giant October field and close to existing infrastructure. During the initial three years period of the concession, BP Egypt is committed to acquiring a 3D seismic survey and 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.

The second concession is Blocks 12 and 13 with total area of 12500 sq. km in the north part of the Red Sea area. The initial period of the concession is three years in which BP Egypt will conduct a high-resolution aeromagnetic survey over the whole concession area and spend one million dollars. In addition BP will conduct a 3D seismic survey of about 1500 sq. km for an estimated cost of $8 million. During the two extension periods of 4 years each, BP is committed to spend $50 million on Exploration activities.

Hesham Mekawi stated: "BP Egypt's history (through its affiliated companies) of exploration and development in the Gulf of Suez, Nile Delta and the Western Desert are a track record that proves our ongoing commitment to Egypt. Our extensive experience with Egyptian petroleum provinces and experienced staff will be essential to accessing new reserves in frontier basins such as the northern Red Sea."