BP plc’s (BP) unit in Egypt – BP Egypt – has confirmed the availability of gas in the Taurt North and Seth South discoveries. Both finds are in the shallow waters off the coast of Egypt.
These are the fourth and fifth discoveries made by BP in the North El Burg Offshore Concession. The Satis-1 and Satis-3 Oligocene deep discoveries and last year's Salmon-1 shallow Pleistocene were the earlier finds.
The Taurt North and Seth South discoveries were spud using Scarabeo IV rig in water depths of 110 meters and 78 meters, respectively. Eni SpA’s (E) subsidiary International Egyptian Oil Company (“IEOC”) carried out the drilling operations on behalf of BP, the concession partner.
Samples taken from the Taurt North and Seth South developments confirmed that gas was present in one Pleistocene interval in Taurt North and two Plio-Pleistocene intervals in Seth South.
BP was awarded the North El Burg Offshore Concession in June 2005. The company operates the concession with a 50% interest while IEOC holds the remaining 50%.
The concession is flanked by BP-operated Ras El Bar development concession and IEOC-operated Offshore Baltim development concession on its either sides and reaches a water depth of 60 to 100 meters.
Under the Pharaonic Petroleum Company joint venture, BP operates the Ras El Bar concession with a 50% stake along with Egyptian General Petroleum Company (EGPC) and Egypt Natural Gas Holding (Egas). IEOC holds the remaining half.
The partners of the Ras El Bar’s Seth field witnessed first gas three months back in June 2012. The yield from the field is estimated to reach 170 million standard cubic feet per day. BP has interests in 11 concessions in the Nile Delta to date, of which it operates 6.
BP holds a Zacks #3 Rank, which translates to a Neutral rating for a period of one to three months. Longer term, we maintain an Underperform recommendation on the stock.
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