BP to explore two blocks for US$240mn in Egypt

BP-mikemozart-flickrBP will operate the two blocks with Abu Dhabi's Dana Gas and Italy's ENI. (Image source: Mike Mozart/Flickr) BP Egypt has been awarded two exploration blocks, Block 3 and Block 8, for US$240mn in the country as a result of the 2013 EGAS bid round

Company officials revealed that BP and its partners have committed to invest the money in the blocks over different phases.

Block 3 North El Mataria lies 57 km west of Port Said city and is BP’s first entry into the onshore Nile Delta. BP will operate the block with 50 per cent equity and Abu Dhabi’s Dana Gas will hold the remaining 50 per cent working interest.

The second exploration block is Block 8 Karawan Offshore is located in the Mediterranean Sea. BP will have 50 per cent equity and the block will be operated by ENI which holds the remaining 50 per cent.

In addition to exploration, the programme will include 3D seismic and three exploration wells in each of the onshore and offshore blocks in phases over six to eight years.

Hesham Mekawi, regional president of BP North Africa, said, “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 maximising 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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