New production for Egyptian domestic market to start following BG Egypt and BP Egypt agreement

abarrelfullabarrelfull wrote on 24 Mar 2015 08:26

Latest News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"3","module_body":"* %%linked_title%%"}}
  • Want a weekly review of refining news?

BG Egypt today announced the signing of a tie-in agreement with BP Egypt and RWE DEA on 03 March 2015 that will enable the increase of the supply of energy to the Egyptian domestic network through the utilization of BG Egypt’s comprehensive infrastructure.

Libra and Taurus fields, located largely within BP/RWE Dea’s North Alexandria Concession, offshore the Nile Delta, will be connected to BG Egypt and partner PETRONAS West Delta Deep Marine (WDDM) offshore infrastructure. Gas from Libra-Taurus will be processed at the BG Egypt-operated WDDM onshore facilities, and is expected to start producing in mid-2017 at rates of around 600 mmscfd.

A portion of the Libra field (the P80 channel) straddles the boundary between the North Alexandria and the WDDM concessions. Production from this area will be regulated under a unitisation agreement that was also signed today.

Commenting on the agreements, BG Egypt President Arshad Sufi said: "BG Egypt is working closely with the Government of Egypt and our partners to enable the increase of third party gas supply into the country, a reflection of our appreciation of the country’s need for energy. These agreements will enable the development and delivery of additional gas volumes to Egypt’s domestic gas market, through the utilization of BG Egypt’s and our upstream partners’ onshore and offshore infrastructure."

A separate agreement was signed by BG Egypt with BP Egypt and RWE DEA, whereby the right of use of the Rosetta onshore facilities will effectively be transferred from BG Egypt/Edison to BP/RWE Dea as of mid-2016. BP plans to build new production facilities, integrating the existing Rosetta treatment plant with new HPHT installations, to process gas from their Giza, Fayoum and Raven fields from 2018, feeding the country’s domestic network. BG Egypt and Edison will continue to hold rights to the Rosetta Concession, and may process future gas through the WDDM facilities.

Attending the signing ceremony was Tarek El - Molla, CEO, Egyptian General Petroleum Company (EGPC), Arshad Sufi, BG Egypt President, Nader Zaki, BP Egypt General Manager, Mohamed Amin, PICL (PETRONAS) Egypt CEO and Maurizio Coratella, Edison International General Manager.

Notes to Editors:
BG Egypt is a subsidiary of BG Group, one of the principal foreign investors in Egypt. It is a leading player in the development of the local natural gas industry with investments spanning the gas chain from exploration through development and production to LNG. The company is one of the largest producers of natural gas in Egypt. For more information, visit

The West Delta Deep Marine Concession was awarded to BG Egypt in 1995. The Scarab and Saffron fields were brought on-stream in March 2003 delivering gas to the domestic market. Subsequently, the Simian, Sienna and Sapphire fields entered production. Completed in February 2008, WDDM Phase 4 brought into development seven additional deepwater wells in the Scarab/Saffron and Simian subsea fields. Phase 5, an onshore booster compression project, came onstream in May 2009, while Sequoia, a unique project representing Phase 6 of the development of WDDM and Phase 4 of the development of BG Egypt’s other Concession, Rosetta, came onstream in August 2009, bringing six additional wells, three on each Concession.
Gas from Phase 8a, a deepwater development project and an extension of the existing deepwater subsea infrastructure comprising nine subsea wells entered operations in October 2011, while gas from Phase 8b came on stream on in June 2012. First gas from Phase 9a was delivered in July 2014. This Phase comprises 9 wells, and includes the enhancement of the country’s gas infrastructure with an upgraded well control system enabling it to bring new wells on in the complex West Delta Deep Marine concession while maintaining supply from existing wells. To date, eight of the Phase 9a wells have come on stream, while the remaining well will come on stream during 2015.

BG Egypt is the operator of the Concession and holds a 50 per cent working interest. PETRONAS holds the remaining 50 per cent. Burullus Gas Company S.A.E a Joint Operating Company of EGPC, BG Egypt, and PETRONAS conducts operations on behalf of the WDDM partners.

The Rosetta Concession was awarded to BG Egypt in 1995. Rosetta started production in 2001 and supplies the domestic market. BG Group sanctioned the Rosetta Phase III field development plan in 2006 and delivered first gas from the project in first quarter 2008. BG Egypt is the operator of the concession and holds an 80 per cent working interest. Edison holds the remaining 20 per cent. Rashpetco, a Joint Operating Company of EGPC, BG Egypt, and Edison, conducts operations on behalf of the Rosetta partners.

Related News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/\/feed\/pages\/pagename\/blog%3A_start\/tag\/upstream\/category\/blog\/limit\/10\/t\/My+Blog","limit":"3","module_body":"* %%linked_title%%"}}

Looking for information on the E&P sector?

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License