BP PLC has signed a heads of agreement with Egyptian Minister of Petroleum Tarek El Molla that’s expected to accelerate development of BP’s wholly owned Atoll natural gas discovery in the North Damietta offshore concession in the East Nile Delta (OGJ Online, Mar. 9, 2015).
The agreement is expected to enable the start of production to be expedited from an estimated 1.5 tcf of gas resources and 31 million bbl of condensates in Atoll to the Egyptian market. Production is expected to begin in 2018.
Full field development of Atoll is expected to consist of two phases, the first of which will consist of two development wells tied back to existing infrastructure, with production expected to start up in 2018. Success of this first phase is expected to trigger additional investment and further wells to increase production, BP says.
BP also expects to continue to invest in its existing oil operations led by its joint venture Gulf of Suez Petroleum Co. (Gupco), and gas operations led by the Pharaonic Petroleum Co. (PhPC) joint venture, as well as continuing to progress its exploration program in the Nile Delta.
BP expects to sustain its current oil production and double its gas production in Egypt before the end of the decade to reach 2.5 bcfd with partners, which represents more than 50% of Egypt’s current gas production.
Development of Atoll will be executed and operated by PhPC, BP’s JV with Egyptian Natural Gas Holding Co. (Egas) and Eni SPA.
The Atoll-1 deepwater exploration well discovery was BP’s second significant Oligocene discovery in the North Damietta Offshore Concession in the East Nile Delta following the Salamat discovery 2 years ago (OGJ Online, Sept. 10, 2013).
BP and Eni last month were awarded exploration rights to two more blocks offshore Egypt following the 2015 Egas bid round (OGJ Online, Oct. 12, 2015).