Oil and gas super major, BP, has announced that it has reached agreement with the Egyptian government that will see its offshore Atoll gas field fast-tracked to production.
The large offshore Atoll gas field, discovered back in March of this year, has estimated reserves of around 1.5 trillion cubic feet of natural gas and further 31 million barrels of condensates.
British based BP, has a 100% holding in the offshore gas discovery, located around 80 km (50 mi) north of Damietta city, in the Mediterranean Sea.
The new deal could see BP producing gas from the offshore field as early as 2018, helping to double is Egyptian gas production by the end of the decade.
The Heads of Agreement (HoA), was signed by BP and Egyptian Minister of Petroleum, His Excellency Eng. Tarek El Molla, following a meeting between BP CEO Bob Dudley and the Egyptian President Abdel Fattah al-Sisi, whilst on an official visit to the UK.
Speaking on the deal, Bob Dudley said: “We are pleased to be making rapid progress towards the development of Atoll less than eight months after the announcement of its discovery.”
“This is further demonstration of our continued confidence in Egypt – a key growth area for BP – and our commitment to continue to invest to unlock its energy potential.”
Atoll Gas Field
BP have stated that the Atoll field is likely to developed in two phases. The initial phase will include the drilling of two wells that will be tied back subsea to existing offshore assets, allowing the gas field to be brought on-stream quickly.
The second phase of the development will will include further drilling of offshore wells, to greatly increase the Atoll’s gas production rate.
BP hope that by the end of the decade, it will be supplying around 50% of Egypt’s gas production.