BP reaches first production from offshore Egyptian gas project

BP (LSE:BP) announced that first gas production from its Atoll Phase One project off the coast of Egypt has been reached seven months ahead of schedule and 33% below the initial cost estimate.

The offshore project, found in the North Damietta concession of the East Nile Delta, is the British oil major’s first to come into production this year and comes after Atoll was first discovered nearly three years ago in March 2015.

The main reservoir in the field contains an estimated 1.5 trillion cubic feet (tcf) of gas, with roundly 31 million barrels of condensates and further segments under evaluation.

After reaching first production, Atoll’s current production rate is 350 million cubic feet (mcf) as well as 10,000 barrels per day of condensates.

“BP is focused on delivering growth with discipline, carefully choosing and efficiently executing high-quality projects,” said CEO Bob Dudley.

“The longstanding partnerships we have in Egypt allowed us to fast-track Atoll’s development and deliver first gas only 33 months after discovery.”

In other news, BP also moved closer to approving the development of the Tortue natural gas field offshore Mauritania and Senegal, after the West African nations agreed to split production from the cross-border field.