EGPC, EGAS, BP Sign Agreements Regarding Development of Atoll Discovery

The Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and BP signed agreements on Tuesday regarding transportation and processing of natural gas, according to a press release by Egypt’s petroleum ministry.

The agreements cover areas of construction, transportation and processing of gas produced from Atoll field in offshore Damietta concession. An investment of $1 billion is envisioned for this phase of development. Total $3 billion will be allocated towards full development of the discovery. 

Petroleum minister Tareq Al-Mulla witnessed the signing of deals.

Al Mulla stressed the depth of strategic relations binding Egypt's petroleum sector with its foreign partners is based on credibility and mutual trust and that the ongoing coordination and consultation between both parties aim at overcoming any obstacles facing work progress and developing discovered fields.

The minister also reviewed the development plan and hoped for early production at the Atoll discovery. The Atoll discovery (BP 100 percent) in the North Damietta offshore concession in the East Nile Delta, offshore Egypt was announced in March 2015.

According to BP, full field development of Atoll is expected to consist of two phases. The first phase will consist of two development wells tied back to existing infrastructure, with production expected to start up in 2018. Success of this first phase is expected to trigger additional investment and further wells to increase production.

Development of Atoll will be executed and operated by Pharaonic Petroleum Co. (PhPC), BP’s joint venture with EGAS and Eni.