UK-based oil major BP has signed a Memorandum of Understanding (MoU) that would see it investigate the potential of drilling five new wells.
If feasible, the new wells will be drilled in Egypt’s portion of the Mediterranean Sea at depths from 300 to 1,500 metres. The drilling campaign is set to begin next year.
BP, which owns the Castrol metalworking and industrial lubricant brand, is planning to extend the life of production facilities that are already operating in the West Nile Delta. Should the drilling operations reveal potential resources, the company will look at options for tiebacks to these facilities.
BP’s executive vice president for low carbon energy and gas, William Lin, said:
“We appreciate the continued engagement and support from H.E. Minister Karim Badawi. We look forward to applying BP’s technological expertise to build on our recent exploration and development momentum to bring on new gas resources and accelerated production for the country as well as deliver value for our business.”
He also said that the MoU confirmed the company’s commitment to investing in the gas sector of Egypt. BP is planning to increase daily production in Egypt to up to 2.5 million barrels of oil equivalent by 2030.
There is also scope to increase production further in the five subsequent years. The new agreement builds on BP’s 60 years of operations in Egypt. It says it continues to be a major player in developing the energy resources in the country through continuous investment and strategic partnerships.
