BP Plans $10 Bn Investment to Develop Egyptian Gas Fields

Egypt and BP signed a deal on Tuesday under which the British oil and gas major will invest $10 billion over the next four to five years to develop gas fields in the North African nation, Al-Ahram's Arabic news website reported.

The fields, discovered by BP, are estimated to hold 5 trillion cubic feet of gas and produce 1.2 million cubic feet per day – equivalent to 20 percent of Egypt's current daily gas production, the website added.

According to Al-Ahram, BP has been working to invest in Egypt's Nile Delta, Suez Canal and the Mediterranean.  

Amid declining production, Egypt is witnessing a surge in demand for natural gas as demand for power grows. The North Africa nation has resorted to cut in LNG exports to supply to the domestic market. 

Consumption of natural gas is projected to increase 12.5 percent to 5.57 billion cubic feet per day in fiscal year 2014/15.