BP Inks Three Concession Agreements With Authorities In Egypt
Zacks Investment Research | Sep 27, 2016 11:46PM ET
Oil major BP plc (LON:BP) (NYSE:BP) recently announced that it has struck an accord with the Egyptian government for the amendment of three concessions in Egypt.
BP has secured amendments from the authorities for three concessions in Egypt – Temsah, Ras El Barr and Nile Delta Offshore. This will facilitate acceleration of output from the Nooros gas discovery after recording positive appraisal results from another find. Recently, BP achieved record production of 700 million standard cubic feet per day (mmscfd) in the Nooros development.
With the conclusion of these amendments, BP can progress with the enhancement of its drilling activities in these concession areas. The amendments also allow fast track development of the Nooros field in the Nile Delta offshore concession and should allow the company to reach a production level of 800 mmscfd by early 2017. Additional wells are also expected to be drilled by BP in Ras El Barr and Temsah areas, which will likely bring substantial gas to the Egyptian domestic market.
BP has an interest of 50% in Temsah and Ras El Barr and holds 25% interest in the Nile Delta Offshore Concession. The remaining working interest is held by Eni SpA (TO:E) through its subsidiary IEOC.
BP plc made another important discovery in the Baltim South Development Lease in June. The company appraised this discovery with the Baltim South West 2X well that hit a gas column of 102 meters in total and 86 meters net, in two sand layers of messinian age with excellent reservoirs.
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