BP Egypt announced Thursday that is has reached agreement to purchase TotalFinaElf’s 50 percent interest in the West Mediterranean Deep Water Area Concession in the offshore Nile Delta area for an undisclosed sum. BP is already operator of this concession with an existing 50 percent interest, said a press release by BP in Cairo.
The agreement, which was signed on June 19, is subject to the approval of the Ministry of Petroleum.
Commenting on the deal, Hesham Mekawi, recently appointed President and General Manager for BP Egypt, said, “The acquisition of TotalFinaElf's 50 percent share in the West Mediterranean Deep Water Area Concession represents further deepening of our interests in a core exploration area, the western offshore Nile Delta. It complements our positions in the adjacent North Alexandria and North Idku concessions, where we have enjoyed four recent successful exploration wells, proving up over two trillion cubic feet of new gas resources. We plan to drill a first exploration well in the West Mediterranean Deep Water Area Concession later this year.”
The West Mediterranean Deep Water Area Concession was awarded to BP and Elf Hydrocarboures Egypte in May 1999 for an initial term of five years with a commitment to spend $48 million and drill 1 well – Albawaba.com
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