BP to Tap Egypt’s Energy Resources with $12-Billion Deal

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By Jacob Maslow

Truck used for oil drilling in the sinai
Truck used for oil drilling in the sinai

British oil company BP signed an energy deal with the Republic of Egypt for the amount of $12 billion last week.

During an international investment conference held in Egypt’s Sharm El-Sheikh Resort, BP sealed an energy deal amounting to $12 billion dollars, which grants them access to the West Nile Delta. BP planned to develop about 55 million barrels of condensates and five billion cubic feet of gas resources from the Delta.

The energy deal hopes to solve Egypt’s decades-long energy crisis that has plagued the country. Egypt has suffered from persistent blackouts due to decreasing energy production and rising consumption in households. Once a net exporter of energy, Egypt became a net importer in the last couple of years. BP expected the energy deal to produce an additional 25% to Egypt’s current gas production. The oil company also expected to begin production in the West Nile Delta by the year 2017.

Besides the upcoming project in Egypt’s West Nile Delta, acting CEO Bob Dudley also announced the discovery of a recently-drilled deep well in the East Nile Delta. He was optimistic that Egypt can become the next largest market in the Middle East in terms of energy resources.

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