BP gave final approval Friday to its West Nile Delta (WND) project that will develop 5 trillion cubic feet of gas resources and 55 million barrels of condensates in offshore Egypt.
The project is expected to cost about $12 billion.
Production from WND is projected to reach up to 1.2 billion cubic feet a day, equivalent to about 25 percent of Egypt’s current gas production.
All the produced gas will be fed into the Egypt’s national gas grid, helping to meet the anticipated growth in local demand for energy.
Production is expected to start in 2017.
“The project underlines BP’s commitment to the Egyptian market and is a vote of confidence in Egypt’s investment climate and economic potential,” BP said.
Gas will be produced from two BP-operated offshore concession blocks, North Alexandria and West Mediterranean Deepwater.
BP believes there is potential through future exploration to add an additional 5 to 7 tcf to the project that could boost total production with additional investments.
“The WND project investment is the largest foreign direct investment in Egypt, and demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. WND production is key to Egypt’s energy security,” BP CEO Bob Dudley said.