BP to invest US$10 billion in Egypt’s gas fields

oil-egypt-johnhill-wikimediacommonsBP currently produces almost 30 per cent of Egypt’s gas output with its partners. (Image source: John Hill/ Wikimedia Commons)British Petroleum (BP) will invest US$10bn for gas exploration in Egyptian fields, which are estimated to hold 141bn cu m of gas reserves

Ibrahim Mahlab, the North African country’s Prime Minister, has announced the finalisation of the investment deal that will see work begin in gas fields capable of producing 20 per cent of Egypt’s total daily gas output.

The US$10bn capital will be invested over the next four to five years, reports Egyptian news website Al-Ahram.

The fields, which were discovered by BP, can produce 33,980 cu m per day – equivalent to 20 percent of Egypt’s current daily gas production.

BP currently produces almost 15 per cent of Egypt’s oil output and close to 30 per cent of Egypt’s gas production with its partners, the UK major said.

The deal will help tackle Egypt’s energy difficulties as the country requires natural gas for power generation to cover for the nationwide shortages and reverse the deterioration in local production of gas.

Mahlab added that BP has also been working to invest explorations in the Nile Delta, Suez Canal and the Mediterranean.

According to website, Egypt’s consumption of natural gas is projected to increase 12.5 per cent to 157.7mn cu m per day in 2014-15 fiscal year.

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