Thursday 14 Nov
British oil giant BP is set to commence drilling two new natural gas wells in Egypt's West Delta region of the Mediterranean Sea in January, according to a government official. The $160 million project is part of BP's broader $1.5 billion investment plan for Egypt over the next few years, focusing on gas development and drilling operations.
To stimulate gas production, the Egyptian government has introduced new incentives for foreign companies. These include export privileges for a portion of new production, which can be used to offset outstanding dues, and increased production shares for these companies.
BP's drilling initiative aims to
explore new gas-bearing layers in the West Delta region. Any economically
viable discoveries will be rapidly connected to existing production facilities.
Recently, the government made a
$1 billion payment to foreign oil companies as part of an agreement with
Petroleum Minister Karim Badawy to expedite the drilling and production of the
two Raven field wells.
To meet Egypt’s growing demand for natural gas, which currently stands at 6.2 billion cubic feet per day, against a domestic production of approximately 4.6 billion cubic feet per day, the government aims to increase its daily gas production to 5 billion cubic feet by the end of this year.
