BP Operations in Egypt

=Historical overview= BP began operating in Egypt almost 50 years ago, according to the company website, and has invested over US$17 billion in the country, with an annual investment of US$1 billion since 2007, Reuters reported in early 2011. BP is the single largest foreign investor in Egypt.

Between 2001 and 2010, BP carried out an exploration and appraisal program in the West Nile Delta which produced eleven significant oil and gas discoveries: eight in Pliocene geologic formations (Giza, Fayoum, Taurus, Libra, Ruby, Maadi, Viper, Polaris), two in Miocene formations (Raven, Taurus Deep) and one Oligocene discovery (Hodoa). Five of these are now in their initial phase of development in the West Nile Delta project.

=Current operations=

BP's activities in Egypt center mainly on exploration and production. With its partners, BP contributes about 15 percent of Egypt’s total oil production and about 30 percent of its gas production.

Areas of upstream operation
BP holds working interests in eleven concessions in the Nile Delta, with an operator role in six.

The West Nile Delta (WND) Major Project is BP's first operation in Egypt through a BP operating company, and the largest project in the Egyptian oil and gas sector. The project, which is still in its first phase as of mid 2013, has two component concessions: the North Alexandria concession (operated by BP with a 60 percent share, with Germany's RWE holding 40 percent) and the West Mediterranean Deep Water concession (operated by BP with 80 perؤent, RWE with 20 percent), both offshore. The WND project focuses on the primary five fields (Giza, Fayoum, Raven, Taurus and Libra) discovered so far in Egypt's West Nile Delta. Initial phase capital investments in WND will exceed US$13 billion, according to BP's website. The New York Times reported that the project is expected to produce 40 percent of Egypt's natural gas output when completed, and Oil and Gas Journal wrote that it was "a strategic project that will supply critical gas to the domestic market."

BP is also the operator of the Ras el Barr concession, with a 50 percent interest. Eni SPA holds the other 50 percent through its subsidiary International Egyptian Oil Co.

In July 2010, BP announced agreements to sell a series of upstream assets to Apache Corporation, including the Western Desert business concessions and East Badr El-din exploration concession, for US$7 billion. As of mid 2013, according to the company website, BP was actively exploring for oil and gas in the Nile Delta and investing to add production from existing discoveries.

Gulf of Suez Petroleum Company (GUPCO)
GUPCO started as a joint venture between the state-owned Egyptian General Petroleum Corporation (EGPC) and Amoco, which later merged with BP, in 1965. Since then, it has become the largest oil producer in Egypt. GUPCO is the operating company of the joint venture responsible for oil and gas production in the Gulf of Suez, the Western Desert and the Nile Delta. In 2000, BP acquired the majority of the Amoco shares in the GUPCO joint venture, and the subsequent changes in geographical exploration areas have led to major gas discoveries in new fields.

The venture produces approximately 115,000 barrels of oil equivalent per day. GUPCO’s gas operation covers two fields with a production capacity of 80 million cubic feet of gas daily and 5,200 barrels of condensates. GUPCO also owns a field in the Gulf of Suez with a production capacity between 20,000 and 25,000 barrels per day, with reserves of 30 million barrels of oil.

Pharaonic Petroleum Company (PhPC)
In 2008, BP Egypt and its partners in Ras El Barr concession established the Pharaonic Petroleum Company (PhPC), BP's second joint venture with the Egyptian government, to run gas operations within Ras El Barr.

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