British energy giant, British Petroleum (BP), plans to begin drilling two natural gas wells in Egypt’s West Delta in the Mediterranean in January 2024, with an investment of $160 million.
This project is part of BP’s strategy to expand its footprint in Egypt, where it expects to invest up to $1.5 billion over the next few years.
To stimulate foreign investment in gas production, Egypt has recently introduced incentives, including permission for companies to export part of their new output and improved pricing for the producers’ share. The upcoming wells are aimed at tapping into new gas-bearing formations that could be quickly linked to existing infrastructure if commercially viable reserves are discovered.
BP’s drilling initiative aligns with an agreement between the company and Egypt’s Petroleum Minister, Karim Badawi, to fast-track the Raven field operations, ensuring the wells are connected to production systems. The Egyptian government has pledged to fulfill BP’s outstanding dues as part of this collaboration.
With a drilling rig already on-site, BP is poised to start operations early next year. Egypt’s current natural gas consumption reaches 6.2 billion cubic feet per day, while production stands at 4.6 billion cubic feet daily, with a government goal to increase this to 5 billion cubic feet per day by year-end.
