BP Egypt buys out TotalFinaElf in offshore Nile Delta concession

Petroleum News Alaska

BP Egypt will purchase TotalFinaElf’s 50 percent interest in the West Mediterranean deep water area concession in the offshore Nile Delta for an undisclosed sum, the company said July 5.

BP is already operator of the concession with an existing 50 percent interest.

The agreement, which was signed 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 2 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 one well.