LONDON--BP PLC said Monday it has made a significant gas
discovery offshore Egypt days after announcing plans to help invest
around $12 billion to develop gas and condensate from its West Nile
Delta project in the country.
The discovery and investment in Egypt's energy sector is welcome
news for the country, which is facing its worst energy crisis in
decades amid rising demand and falling gas production.
BP said Monday its Atoll-1 deepwater exploration well in the
East Nile Delta had hit 50 meters of gas-bearing rock, the
company's second major discovery in the area since 2013 and a
promising sign for the potential commercial development of the
concession. The company estimates that the potential volume of gas
in the area could exceed 5 trillion cubic feet.
The discovery follows BP's decision last week to go ahead with
development of the West Nile Delta project, in which it holds a 65%
stake. Production from the project is expected to reach up to 1.2
billion cubic feet of gas a day, or about 25% of Egypt's current
output.
Meanwhile, the discoveries in the East Nile Delta present a
"positive starting point for the next possible major project in
Egypt," BP Chief Executive Officer Bob Dudley said in a statement
Monday.
Write to Sarah Kent at sarah.kent@wsj.com
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