BP Plans to Invest $240 mn in Two Gas Blocks in Egypt

British Petroleum (BP) plans to invest about $240 million in two new exploration blocks in the Nile Delta and Mediterranean in multiple phases, Daily News Egypt newspaper reported Tuesday citing a company statement.

The British energy major was awarded the two blocks as a result of the 2013 Egyptian Natural Gas Holding Company (EGAS) bid round.

The first project is in North El Mataria (Block 3) located in the northern part of the Nile Delta and is deemed BP’s first entry into the onshore Nile Delta. BP will operate the block with 50% equity and Dana Gas will hold the remaining 50%, according to the statement.

Kawaran Offshore (Block 8) is the second project and it is located in the Mediterranean. In Block 8, also named Karawan Offshore, Eni will be partner with BP, with both companies holding a 50% equity interest. This licence covers an area of 4,565 sq kms in water depths ranging from 2,000 to 2,500 meters.

Earlier this year, Egypt and BP signed a deal under which the British oil and gas major will invest $10 billion over the next four to five years to develop gas fields in the North African nation.