CAIRO - 13 November 2024: British Petroleum (BP) is set to start drilling two new natural gas wells in Egypt’s West Delta region in the Mediterranean Sea, investing around $160 million.
This operation is scheduled to kick off in January 2024, aiming to boost Egypt’s natural gas output to meet the country’s rising demand.
To encourage foreign investments in the gas sector, Egypt recently introduced incentives allowing companies to export a portion of their new production, using the revenues to settle dues, and also increased the price for companies’ share of gas output.
BP’s drilling is part of its broader plan to invest approximately $1.5 billion in Egypt over the coming years, focusing on gas exploration and development projects.
According to an Egyptian government official, BP’s drilling activities aim to explore additional gas-bearing layers in the West Delta, which could swiftly integrate into production if commercially viable reserves are confirmed.
The current drilling plans follow a recent agreement between BP and Egypt’s Minister of Petroleum, Karim Badawi, to expedite drilling and connect the new wells in the Raven field, with the Egyptian government committing to timely settlement of BP’s dues.
A drilling rig has already arrived at the site, preparing to commence operations by early 2024.
Egypt’s daily natural gas needs stand at 6.2 billion cubic feet, while current production levels are around 4.6 billion cubic feet, with a government target to increase production to 5 billion cubic feet daily by the end of the year.
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