BP plc BP announced that it has concluded the purchase of 22.75% in the North Alexandria Concession and 2.75% in the West Mediterranean Deep Water Concession of the West Nile Delta project from Hamburg-based DEA Deutsche Erdoel AG.
With the completion of this transaction, which was inked in Mar 2015, BP’s working interest in the West Nile Delta project concessions has reached 82.75%.
The scope of the West Nile Delta project agreement includes the development of 5 trillion cubic feet of gas resources and 55 million barrels of condensates. Production from the West Nile Delta is estimated to be about 1.2 billion cubic feet a day (bcf/d), which is currently about 25% of Egypt’s total gas production. Production of gas from the concessions is scheduled to commence in 2017 all of which, will be supplied to the country’s national gas grid.
BP has been enjoying a strong foothold in Egypt for over 50 years. Investments by BP in the country exceed $25 billion, thereby making it one of the largest foreign investors in Egypt. In the nation, BP is mainly involved in oil and gas exploration and production. The company works tirelessly to meet the growing local demand in the country by aggressively exploring the Nile Delta and capitalizing on opportunities to boost yield from existing discoveries.
BP in partnership with the Gulf of Suez Petroleum Company (GUPCO), BP’s joint venture with the Egyptian General Petroleum Company (EGPC), has produced about 40% of Egypt’s total oil production, till date. Currently BP’s yield in Egypt accounts for about 10% of the country’s annual oil and condensate.
Presently, BP carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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