BG, BP, RWE DEA ink deal to increase Egypt energy supply
BG Egypt has yesterday (March 12) announced the signing of a tie-in agreement with BP Egypt and RWE DEA on March 3, 2015 that will enable the increase of the supply of energy to the Egyptian domestic network through the utilization of BG Egypt’s comprehensive infrastructure.
Libra and Taurus fields, located largely within BP/RWE Dea’s North Alexandria Concession, offshore the Nile Delta, will be connected to BG Egypt and partner PETRONAS West Delta Deep Marine (WDDM) offshore infrastructure. Gas from Libra-Taurus will be processed at the BG Egypt-operated WDDM onshore facilities, and is expected to start producing in mid-2017 at rates of around 600 mmscfd.
A portion of the Libra field (the P80 channel) straddles the boundary between the North Alexandria and the WDDM concessions. Production from this area will be regulated under a unitisation agreement that was also signed yesterday, BG said in the statement.
Commenting on the agreements, BG Egypt President Arshad Sufi said: “BG Egypt is working closely with the Government of Egypt and our partners to enable the increase of third party gas supply into the country, a reflection of our appreciation of the country’s need for energy. These agreements will enable the development and delivery of additional gas volumes to Egypt’s domestic gas market, through the utilization of BG Egypt’s and our upstream partners’ onshore and offshore infrastructure.”
A separate agreement was signed by BG Egypt with BP Egypt and RWE DEA, whereby the right of use of the Rosetta onshore facilities will effectively be transferred from BG Egypt/Edison to BP/RWE Dea as of mid-2016.
BP plans to build new production facilities, integrating the existing Rosetta treatment plant with new HPHT installations, to process gas from their Giza, Fayoum and Raven fields from 2018, feeding the country’s domestic network. BG Egypt and Edison will continue to hold rights to the Rosetta Concession, and may process future gas through the WDDM facilities.
Attending the signing ceremony was Tarek El – Molla, CEO, Egyptian General Petroleum Company (EGPC), Arshad Sufi, BG Egypt President, Nader Zaki, BP Egypt General Manager, Mohamed Amin, PICL (PETRONAS) Egypt CEO and Maurizio Coratella, Edison International General Manager.