LONDON – BP has signed a heads of agreement with the Egyptian Minister of Petroleum, His Excellency Eng. Tarek El Molla, to accelerate the development of the recent Atoll gas discovery.
The agreement is expected to enable first production to be expedited from an estimated 1.5 tcf of gas resources and 31 MMbbl of condensates in the Atoll field to the domestic market. Production is expected to begin in 2018.
Full field development of Atoll is expected to consist of two phases. The first phase will consist of two development wells tied back to existing infrastructure. BP says success of this first phase is expected to trigger additional investment and further wells to increase production.
Development of Atoll will be executed and operated by Pharaonic Petroleum Co., BP’s joint venture with EGAS and Eni.
Hesham Mekawi, BP North Africa regional president, said: “Today’s agreement, which will bring additional production to the Egyptian domestic market and help to meet Egypt’s energy demands, is another important milestone for BP in Egypt following our recently announced West Nile Delta major project.”
BP also expects to continue to invest in its existing oil operations led by its joint venture Gulf of Suez Petroleum Co. and gas operations led by the Pharaonic Petroleum Co. joint venture, as well as continuing to progress its exploration program in the Nile Delta.
The company says it expects to sustain its current oil production and double its gas production in Egypt before the end of the decade to reach 2.5 bcf/d with partners, which represents more than 50% of Egypt’s current gas production.