DEA has reached an agreement with BP to sell half of its 34.5% stake in the West Nile Delta (WND) project in Egypt to better balance its portfolio. BP will increase its interest in the WND project from 65.5% to 82.75%, with DEA retaining 17.25%; the transaction is subject to approval of the Egyptian General Petroleum Corporation (EGPC).
The US$12bn West Nile Delta gas project is estimated to hold 5 tcf (more than 140 bcm) of gas resources and 55 mbl of condensate and will require a total investment of about US$12bn. Gas production should start in 2017; gas output from two BP-operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater is expected to reach up to 1.2 bcf/d (34 mcm/d or 12.4 bcm/year), i.e. a quarter of the current gas consumption in Egypt (47 bcm in 2013) and will be fed into the national gas grid. Additional exploration could add a further 5-7 tcf (141-198 bcm) in gas reserves. The WND project will maximise the utilisation of existing infrastructure Taurus/Libra fields, Giza/Fayoum and Raven fields.