Egypt: West Delta Deep Marine Phase 7 Enters Operations

BG Egypt announced the start of incremental gas production on 19 January 2011 through the first part of Phase 7 of the West Delta Deep Marine (WDDM) Concession (BG Group 50%, PETRONAS 50%). This represents another successful milestone in the phased development of WDDM.

Managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50%, BG Group 25%, PETRONAS 25%), Phase 7 comprises a new 68 km, 36 inch offshore pipeline with associated onshore gas receiving facilities, a slug-catcher, adjacent to the two existing WDDM pipelines, and five new compressors. This latest phase is designed to help maintain plateau gas production from the Concession. The initial incremental production is through the new pipeline, with the compression plant expected to start-up later this year.

Three innovative offshore subsea hot-taps with duplex stainless steel were installed to tie the new pipeline into the existing pipeline. These operations were delivered without shutting down the existing pipeline, and as such did not interfere with production. The project was executed safely in an area with existing onshore and offshore activities.

Commenting on the project, BG Egypt President Arshad Sufi said: “We are very pleased with the latest field development phase, which has been delivered under budget and ahead of schedule. The delivery of the first part of Phase 7 marks yet another success realised through the commitment of BG Egypt and its partners to the sustained development of the Concessions to ensure continued gas supply.”

EGPC affiliate companies performed key roles across the project. ENPPI were responsible for the design and procurement of onshore facilities; Petrojet performed the construction work, in addition to the supply and fabrication of the slug-catcher; Petroleum Marine Services (PMS) executed the offshore shallow water pipe lay and beach approach; Allseas carried out the deepwater pipe lay; and, Technip executed the hot-taps tie-in and the commissioning of the offshore pipeline. During peak activity, the project generated employment for 1,500 people.

Burullus Gas Company S.A.E. managed the work with minimal environmental impact allowing continuous beach access to local fishermen, and restoring it to its original status immediately after work was concluded.

BG Group plc is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. BG Group is committed to making a positive contribution to economic, social and environmental development in the countries and communities in which it operates through its business activities and related social investment programmes.

BG Egypt, a business of BG Group, is one of the principal British investors in Egypt. In 2009 the company celebrated 20 years working in the country. It is a leading player in the development of the local natural gas industry with investments spanning the gas chain from exploration through development and production to downstream projects in LNG. The company operates the largest share of Egypt’s gas production, accounting for over 35 per cent of the country’s gas output, which supplies both domestic and international markets.

The West Delta Deep Marine Concession was awarded to BG Egypt  in 1995. The Scarab and Saffron fields were brought on-stream in March 2003 delivering gas to the domestic market. Subsequently, the Simian, Sienna and Sapphire fields entered production. Completed in February 2008, WDDM Phase 4 brought into development seven additional deepwater wells in the Scarab/Saffron and Simian subsea fields. Phase 5, an onshore booster compression project, came onstream in May 2009, while Sequoia, a unique project representing Phase 6 of the development of WDDM and Phase 4 of the development of BG Egypt’s other Concession, Rosetta, came onstream in August 2009, bringing six additional wells, three on each Concession.

BG Egypt is the operator of the Concession and holds 50 per cent equity. PETRONAS holds the remaining 50 per cent. Burullus Gas Company S.A.E a Joint Operating Company of EGPC, BG Egypt, and PETRONAS conducts operations on behalf of the WDDM partners.

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Source: BG, January 20, 2011;