BP plans to invest more than US$12bn in Egypt over the next five years and to double its supply of gas to the local market in the next decade. The group aims to increase its gas production to help ease the energy crisis in the country. Gas consumption has been rising steadily since 2005 (37 bcm in 2005, 45 bcm in 2008 and 53 bcm in 2013), prompting the government to divert gas exports to the local market to ensure domestic supply. This move, coupled to a declining production (from 62 bcm in 2008 to 58 bcm in 2013), has contributed to erode the profits of international companies that had entered Egypt to develop gas exports. Egypt plans to repay its US$4.9bn debt to foreign oil and gas companies by mid-2015, expecting them to resume exploration.
BP plans to invest US$24-26bn/year worldwide between 2015 and 2018, including US$20-22bn for upstream. The group plans to divest US$10bn of assets by the end of 2015, in addition to the recent US$38bn divestment completed recently. BP will seek US$1-2bn reduction in capital expenditures in 2015.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.