CAIRO: British Petroleum Egypt announced Monday a new “important” deep-water gas discovery in Egypt’s Mediterranean North Damietta Offshore Concession.
Any discovery would help meet growing energy demands in Egypt, which has been witnessing a sharp energy shortage over the past four years, which has caused daily power cuts, with the crisis taking a severe turn for the worse last summer.
The new East Nile Delta discovery, Atoll-1, is expected to be the deepest well ever drilled in Egypt, BP stated Monday.
“The estimated potential in the concession exceeds 5 trillion cubic feet (tcf) and we now have a positive starting point for the next possible major project in Egypt after BP’s West Nile Delta project,” Bob Dudley, BP Group Chief Executive, said in the statement.
Atoll-1 is BP’s second significant discovery in the North Damietta Concession 2013’s Salamat, according to the statement.
“The Atoll discovery is a great outcome for our second well in this core exploration program in the East Nile Delta,” Hesham Mekawi, BP North Africa Regional President said.
On Friday, BP signed the final agreements of the West Nile Delta project to develop five trillion (tcf) of gas resources and 55 million barrels of condensates with an estimated investment of around $12 billion by BP and its partner.
The project is “a vote of confidence in Egypt’s investment climate and economic potential,” the company said in a statement.