Egypt’s super-giant Zohr gas field begins production, completing BP’s major project start-ups for 2017
BP today confirmed that production has started from the super-giant Zohr gas field, offshore Egypt. The field is operated by Eni, through its joint venture with The Egyptian General Petroleum Corporation (EGPC), and is the largest natural gas discovery yet to be made in the Mediterranean Sea.
Delivery of first gas from Zohr completes BP’s programme of seven Upstream major project start-ups in 2017. Zohr follows the earlier start-ups of the Khazzan project in Oman, Persephone in Australia, Juniper and the Onshore Compression project in Trinidad, Quad 204 in the UK, and the first phase of the West Nile Delta project, also in Egypt.
Bob Dudley, BP group chief executive, said: “We are proud to have worked with Eni, Rosneft and the Egyptian government to deliver a project that is strategically important for Egypt and will help meet the country’s growing energy demand.
“This is also an important strategic milestone for BP, marking the completion of one of the biggest development programmes we have ever delivered in a single year. Seven new upstream projects around the world have been brought safely into production in 2017, on average under budget and on schedule. We’re well on the way towards our goal of delivering 800,000 barrels a day production from our new projects by 2020.”
The Zohr gas field was discovered by Eni in August 2015 and is estimated to have a total potential of up to 30 trillion cubic feet of gas in place. Eni through its joint venture Petrobel operates the Shourouk concession that contains the Zohr field. BP completed its purchase of a 10% interest in the concession from Eni in February 2017 and Rosneft purchased a 30% interest from Eni in October 2017.
Hesham Mekawi, Regional President, BP North Africa commented: “The development of Zohr in a record time has brought a new critical source of energy to the Egyptian market. BP’s two other current major projects in Egypt – Atoll and the second phase of the West Nile Delta project – will bring further new gas resources into production. Together these projects will play an important role in supporting and reshaping Egypt's energy sector.”
Notes to editors
- Further information on BP’s seven Upstream major project start-ups in 2017 can be seen at: www.bp.com/7in2017
- BP’s business in Egypt stretches back over 55 years. Total investments of approximately $30 billion make BP one of the largest foreign investors in the country. BP’s business in Egypt is primarily in oil and gas exploration and production.
- To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP’s joint venture company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt’s entire oil production, and currently produces almost 10% of Egypt’s annual oil and condensate.
- BP also currently produces close to 40% of Egypt's total natural gas consumption through its joint ventures the Pharaonic Petroleum Company (PhPC) and Petrobel with EGPC/EGAS and partners.
- BP operates the West Nile Delta project which involves the development of 5 trillion cubic feet of gas resources and 55 million barrels of condensates. Production is expected to potentially reach up to 1.3-1.5 billion cubic feet a day (bcf/d) once all development phases are complete - equivalent to about 30% of Egypt’s current gas production - which will supply the country’s national gas grid. The first phase of the project began production in March 2017.
- Another important project for BP is the Atoll Early Production Scheme (EPS) which will develop a portion of the 1.5 trillion cubic feet of gas resources and 31 million barrels of condensate in place and produce around 0.3 bcf/d. All the produced gas will be fed into the country’s national gas grid.
- BP has made a series of discoveries in Egypt in recent years including Taurt North, Seth South, Salmon, Rahamat, Satis, Hodoa, Notus, Salamat and Atoll.
- BP also has 33% interest in a natural gas liquids (NGL) plant, the United Gas Derivatives Company (UGDC) and in the downstream sector through the Natural Gas Vehicles Company (NGVC).
Cautionary statement
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement. This press release contains certain forward-looking statements concerning BP’s major project start-ups including plans and expectations to deliver 800,000 barrels a day of production from new projects by 2020 and plans and expectations regarding the West Nile Delta and Atoll Early Production Scheme projects, including start-up timing, production levels and contribution to Egypt’s energy sector. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under “Principal risks and uncertainties” in the results announcement for the period ended 30 June 2017 and “Risk factors” in our Annual Report and Form 20-F 2016.
This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov.
