BP Increases Stake in West Nile Delta Project in Egypt to 82.75%

BP increased its stake in the West Nile Delta (WND) project in Egypt, buying 17.75% of in the ongoing Phase 1 from DEA, which is entering into its capital intensive phase.

“With our remaining interest of 17.25%, we continue to be one of the largest investors in Egypt’s energy future,” Christoph Schlichter, Senior Vice President Production North Africa of DEA Deutsche Erdoel AG, commented in a note released on Monday, explaining the company’s decision to farm down its stake to better balance its portfolio. 

After the approval of the Egyptian General Petroleum Corporation (EGPC), WND will remain the largest project in DEA’s portfolio. BP will then hold a 82.75% stake in the project.

According to the two companies, the West Nile Delta project will cost 12 billion USD. It should start production in 2017 and it is expected produce 1.2 billion cubic feet per day, which constitutes approximately 25 percent of Egypt’s current gas production. 

Announcing the investment in March 2015, BP said that the project is the largest foreign direct investment in Egypt.

“We are one of the leading foreign investors in Egypt and have been committed to the country for more than 40 years. WND is a key part of our portfolio and a strategic project for Egypt, which we are committed to delivering with our partner BP” Thomas Rappuhn, CEO of German-based DEA, said.  

DEA’s Disouq gas development project in the Egyptian onshore Nile Delta has recently allowed the company to double its daily oil and gas production in Egypt. Dea was the oil and gas unit of RWE, sold to Russia’s LetterOne in March.