Abu Dhabi Nationwide Oil Co. (Adnoc) and BP P.L.C. have agreed to type a three way partnership (JV) for pure gasoline manufacturing in Egypt, the 2 firms stated.
The settlement entails BP contributing its stakes in three growth concessions and three exploration licenses. “ADNOC will make a proportionate money contribution which can be utilized for future development alternatives”, a joint information launch said.
One of many belongings, the offshore North Damietta block, incorporates the Atoll and Qttameya fields, which began gasoline manufacturing 2018 and 2020 respectively. Atoll at the moment produces about 300 million cubic toes per day (MMcfpd) and provides the North African nation’s energy grid, BP says on its web site. Qattameya, which is tied again to the Ha’py and Tuart subject through a 50-kilometer (31.1 miles) pipeline and a 50-km umbilical, is predicted to provide 50 MMcfpd of gasoline, BP stated in a information launch October 26, 2020, asserting startup.
BP holds a 100% stake within the block, positioned within the Nile Delta to the north of BP and Eni S.P.A.’s North El Burg and Ras El Barr license areas, by way of Pharaonic Petroleum Co. (PhPC), a JV with Egyptian Pure Gasoline Holding Co.
BP would additionally contribute to the JV with Adnoc its 50 % curiosity within the North El Burg block, positioned within the shallow waters of the Mediterranean Sea between BP and Eni’s Baltim North and Ha’py areas. North El Burg has yielded 4 gasoline discoveries: Salmon, Satis, Seth South and Taurt North, in line with Wooden Mackenzie (WoodMac). Satis accounts for over half of reserves, the consultancy stated in an asset report December 1. Operator PhPC has utilized for growth leases for all 4 after the exploration license expired June 2013, WoodMac stated.
Nile Delta offshore block Shorouk, which incorporates what BP calls the “supergiant” Zohr gasoline subject, is the third growth lease within the JV with Adnoc. Zohr’s manufacturing reached over 2.7 billion cfpd (Bcfpd) 2019 with a possible to develop to three.2 Bcfpd, in line with a press launch August 21, 2019, by Eni, the bulk proprietor of operator Belayim Petroleum Co. (BP: 10 %).
Positioned adjoining to Egypt’s maritime border with Cyprus, the sector is the primary deepwater Miocene carbonate discovery within the basin and is estimated to carry as much as 30 trillion cubic toes of lean gasoline making it the largest discovery within the Mediterranean, Woodmac stated in an asset report July 19.
In addition to the three growth concessions, BP will even contribute to the JV with Adnoc the Bellatrix-Seti East, North El Fayrouz and North El Tabya exploration concessions.
“Immediately’s announcement with bp represents a big step ahead as Adnoc builds its worldwide pure gasoline portfolio”, Musabbeh Al Kaabi, Adnoc govt director for low-carbon options and worldwide development, stated in an announcement. “This progressive three way partnership partnership will improve Egyptian power safety and the financial potential of the area’s most populous Arab nation.
“Constructing on our long-standing strategic partnership with bp, Adnoc seems to be ahead to proceed exploring different alternatives as we collectively search to decarbonize our operations and lead a simply and equitable power transition”.
William Lin, BP govt vice-president for areas, corporates and options, stated, “This dynamic JV provides a platform for worldwide development that advances our longstanding and strategic partnership with Adnoc that spans over 5 many years”.
The companions anticipate to finish the JV formation by the top of 2024 topic to regulatory clearances.
In addition to belongings that will be migrated to the JV with Adnoc, BP additionally operates Egypt’s West Nile Delta gasoline growth, which incorporates 5 fields. The event at the moment produces 1.0 Bcfpd and has an funding of about $9 billion, BP says on its web site. Wintershall Dea is a accomplice holding the remaining 17.25 %.
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