21 Jun BP accelerates Egyptian gas project
Oil major BP (LSE:BP) and Egyptian Natural Gas Holding Company (EGAS) have agreed to fast-track the Atoll Phase One project, generating around 300 million ft³ a day gross from 2018, three years after initial discovery.
The first wells will be drilled in August and the result of the early production scheme (EPS) may lead to future investment in the Atoll Phase Two full field development.
The EPS requires the recompleting of the current exploration well, in addition to a production well, drilling two more wells and installing necessary links and facilities needed to produce from the oil field.
“BP is proud to progress the acceleration of the Atoll project which will bring critical gas to the Egyptian market and establish a new, material hub offshore East Nile Delta,” said Hesham Mekawi, regional president for BP North Africa. “Our confidence in the prospectivity of the area along with our ongoing commitment to Egypt and our successful history of partnership with the ministry of petroleum, EGPC and EGAS is allowing us to fast track Atoll from discovery to production in less than three years which is a significant achievement.”
BP recently finished a number of transport and processing agreements speeding up the development of the Atoll field which holds an estimated 1.5 trillion ft³ of gas and 31 million barrels of condensates.
BP announced the Atoll discovery in March 2018 and later signed an agreement with the Egyptian government.
The Atoll-1 deep-water exploration well in the North Damietta Offshore concession in East Nile Delta was drilled using the Maersk Discoverer. The well reached a depth of 6,400 metres and penetrated about 50 metres of quality sandstones.