Oil Giants in Big Egypt Contracts

Oil Giants in Big Egypt ContractsOil Giants in Big Egypt Contracts

British oil company BP finalized on Saturday a $12 billion deal with Egypt to develop 141 million cubic meters (mcm) of gas resources and 55 million barrels of condensates in the West Nile Delta.

The supply deal, signed at an international investment conference in the Sharm El-Sheikh resort, will help Egypt as it tackles its worst energy crisis in decades, Reuters reported.

Rising energy consumption and decreasing production have turned it from a net energy exporter to a net importer in the last few years and caused persistent blackouts.

BP has said that production from the project was expected to reach up to 34 mcm per day, equivalent to about 25 percent of Egypt’s current gas production.

BP said it had about 65 percent equity in the project partnership. Production is expected to start in 2017.

Italian oil giant Eni also signed heads of agreement with Egypt worth $5 billion over 4-5 years, the oil minister and the company said on Saturday at a weekend investment summit in the Red Sea resort of Sharm El-Sheikh.

Oil Minister Sherif Ismail said he expected the investment in several discoveries would generate production of more than 25 mcm of gas.

He said the investment was for concessions in the Mediterranean, the Western Desert, the Nile Delta and Sinai, and added the deal would be finalized within six weeks.

In addition, British energy company BG will invest $4 billion in Egypt over the next two years, the company’s chief operating officer said on Saturday.

Sami Iskander said the firm would sign an agreement with the government on Sunday, the final day of a weekend investment conference where Egypt is hoping to attract billions of dollars, especially in the energy sector.