BP Announces Second Gas Discovery in Egypt’s Nile Delta
BP made a second gas discovery in Egypt, saying that prospects for the region are getting better. The company estimates the potential of its concession in the East Nile Delta at over 5 tcf.
‘The estimated potential in the concession exceeds 5 trillion cubic feet (tcf) and we now have a positive starting point for the next possible major project in Egypt after BP’s West Nile Delta project” Bob Dudley, BP Group Chief Executive, commented in a note released on Monday.
The UK-based company said that the Atoll-1 deepwater exploration well has reached 6,400 metres depth. It reported 50 metres of gas pay in high quality Oligocene sandstones.
“We are proud of our commitment to unlock Egypt’s exploration potential that requires large investments to utilise using the latest drilling and seismic technologies” Hesham Mekawi, BP North Africa Regional President, added.
BP, which has 100% equity in the discovery 80 km north of Damietta city, said that the well will drill for another kilometre.
Last week, BP announced that it has signed the final agreements of the West Nile Delta project (WND) to develop 5 trillion cubic feet (tcf) of gas resources and 55 million barrels (mmbbls) of condensates.
Egypt made the headline on Monday also for another discovery, and for a declaration coming from the African country’s oil ministry.
London-based Aminex announced that the South Malak-2 well on the West Esh el Mellaha-2 concession has been declared a discovery well.
‘Tests showed production flow rates of approximately 430 barrels per day of 40 API crude. Based on the success of SM2 a full field development programme will be presented by the Operator to the Egyptian Authorities and the joint venture partners prior to commercial development’ reads a separate press statement.
Aminex has a 12.5% stake in APEL, which holds a 80% interest in the West Esh el Mellaha-2 concession.
Meanwhile, the North African country, which turned from a net energy exporter into a net energy importer over the last years, reportedly set the price of shale gas from a concession to foreign companies at $5.45 per mmBtu.