Prime Minister Ahmed Nazif yesterday received the chairman of the oil and energy company British Petroleum – known worldwide as BP - in the presence of the Minister of Petroleum Sameh Fahmi.

The BP senior official displayed the unprecedented deal between BP and Egypt's Ministry of Petroleum where BP injects EGP 50 billion into oil and natural gas exploration operations in Egypt over the next five years- as a first phase to be followed by further phases, reported the Egyptian Cabinet Spokesman, Magdi Radhi.

Furthermore, Egypt has brokered the largest deal for oil and natural gas exploration in the deep water of the Mediterranean. The deal is worth $9 billion – the highest direct investment in the history of the oil industry in Egypt.

BP of the UK and RWE of Germany contribute to this $9-billion deal, which aims at producing 900 million cubic feet of natural gas per day and 10,000 barrels of condensates. Production starts in 2014 at two areas; north of Alexandria and the western Mediterranean that has nearly 5 trillion cubic feet of natural gas reserve.

BP CEO, Tony Hayward, said, "Cooperation with Egypt in the oil field is a great model for BP investment. During its 50-year-old business in Egypt, BP invested USD 17 billion and is currently providing nearly 40 percent of total Egyptian production.

RWE CEO, Thomas Rappuhn, said, "Investments planned in that deal are the largest in RWE's history in the field of exploration and production."

Rappuhn said RWE would support that colossal undertaking with the required technical expertise, in addition to utilizing up-to-date technologies.

He noted that his company aims to carry out fast-paced development in these oilfields in order to come on stream as officially scheduled.

RWE has been working in the exploration and production sector in Egypt since 1974 and made many major natural gas discoveries, the German official remarked.  

 

Source: Al-Ahram daily