UK oil and gas major BP has plans to make a $1.5bn investment in Egypt aimed at development and exploration activities.
The move was disclosed following a meeting between Egyptian President Abdel-Fattah al-Sisi and bp CEO Murray Auchincloss during the Egypt Petroleum Show, EGYPS 2024, in Cairo.
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Auchincloss highlighted bp’s willingness to increase its involvement in Egypt’s oil and gas exploration sector.
He added that in order to make use of the current land and marine infrastructure, Egypt is the company’s top choice for exploratory projects.
This is expected to support the state’s attempts to export excess energy and meet the local market’s expanding demands by accelerating development and production plans.
In addition to the initial $1.5bn investment, Auchincloss revealed the potential for an extra $5bn in investments over the coming years.
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By GlobalDataFor his part, Egypt’s presidency spokesman, Counselor Ahmed Fahmy, conveyed President El-Sisi’s appreciation for bp’s investments and exploration projects in the country.
The President highlighted that bp’s activities are in line with Egypt’s ambition to become a regional hub for energy production and trade, reaffirming the state’s support for international and private sector companies in the energy sector.
The announcement comes on the heels of bp’s plans to form a new gas JV with ADNOC in Egypt.
The JV, majority-owned by bp with a 51% stake and ADNOC holding 49%, will draw on both companies’ extensive expertise.
Initially, the JV will include bp’s interests in three development concessions and various exploration agreements within Egypt.
These include the Bellatrix-Seti East, North Damietta, North El Burg, North El Fayrouz, North El Tabya and Shorouk concessions.
bp’s stakes in these concessions are significant, with a 10% share in the Shorouk concession, home to the Zohr field; full ownership of North Damietta; and a 50% interest in North El Burg.
The North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concessions will also be incorporated into the agreement with ADNOC.
