Egypt Daily News – Egypt estimates the initial reserves of BP’s King Maryut discovery in the North Mediterranean to be between 3 and 4 trillion cubic feet of natural gas, according to two government officials who spoke on condition of anonymity.
The officials’ statements come hours after Egyptian Prime Minister Mostafa Madbouly announced the new discovery. BP began drilling two wells in the King Mariout and Fayoum concessions in the West Delta in January with an estimated USD 160 mn investment.
The Egyptian Natural Gas Company (EGAS) has begun preliminary negotiations with BP to determine the facilities required “to start producing gas from the King Maryut discovery during the third quarter of this year,” according to sources.
A second well is being drilled in the King Maryut concession to confirm the field’s producible rates, which is expected to be completed during the second quarter of this year, the official said.
Egypt’s daily gas needs amount to 6.2 billion cubic feet per day, while its daily production amounts to about 4.3 billion cubic feet, and the government aims to increase natural gas production by the end of this year to about 5 billion cubic feet per day.
BP’s West Delta operation is part of the company’s plan to drill new wells to explore new gas-bearing layers that can be quickly brought onto production facilities if economic gas reserves are found.
Egypt has offered foreign companies new incentives to increase gas production by allowing them to export a certain portion of the new production, the proceeds of which will be used to pay dues, as well as raising the price of their share of the new gas production, according to a statement issued by the Egyptian cabinet last week.
