BP Announces First Gas from DEKA Project, Offshore Egypt

BP Announces First Gas from DEKA Project, Offshore Egypt

Cairo – BP Egypt today announced first gas from the DEKA project offshore Egypt with the start of production from the Denise South-6 well at an initial rate of 50 million cubic feet per day (mmscf/d). The DEKA project is centred on the Denise and Karawan gas fields in Temsah Concession in the East Nile Delta and will supply the country’s domestic market.

Hesham Mekawi, BP North Africa Regional President, said: “The DEKA project is another example of BP’s commitment to Egypt and longstanding Egyptian partnerships. We look forward to continuing to play a key role in the development of Egypt’s energy sector and maximising the use of our existing resources to help meet the country's growing energy demands for years to come.”

The DEKA project is a group of gas discoveries being developed through 5 subsea wells including the Plio-1 C well in the Temsah concession, the installation of subsea production systems together with sealines and gas processing at the onshore El Gamil Gas Plant onshore. It uses existing infrastructure from the Seth field (BP 50% interest), the Temsah pliocene export pipeline and El Gamil gas terminal infrastructure. DEKA is expected to deliver 230 mmscf/d of gas at peak from early 2015 from the five wells including Plio-1 C.

The Denise South 6 well is approximately 65 kilometres north of Port Said, in 100 metres of water.

BP and ENI each hold a 50% interest in the Temsah concession. DEKA is operated by the Petrobel joint venture.

BP has a long and successful track record in Egypt stretching back 50 years with investments exceeding $25 billion, making BP one of the largest foreign investors in the country. In Egypt, BP's business is primarily in oil and gas exploration and production.

To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP's joint venture (JV) Company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt's entire oil production, and currently produces almost 10% of Egypt's annual oil and condensates production.

In addition, through BP's JVs with EGPC/EGAS and IEOC (ENI) the Pharonic Petroleum Company (PhPC) and Petrobel currently produce close to 30% of Egypt's total gas production.

BP is a 33% shareholder of an NGL plant extracting LPG and Propane, United Gas Derivatives Company (UGDC) in partnership with ENI/IEOC and GASCO (the Egyptian midstream gas distribution company).

BP is also present in the downstream sector through Natural Gas Vehicles Company (NGVC, BP 40%) which was established in September 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.