BP has started drilling the NS 377-5 development well at the North Shadwan concession off Egypt, the well is targeting oil in the Kareem formation.

The well spudded on 12 January after an earlier exploration well, NS 377-4 was plugged and abandoned, according to North Shadwan’s partner, Beach Petroleum.

The North Shadwan blocks lie in water depths of 20 meters to 40 meters, two to four kilometers offshore from the eastern shore of the Gulf of Suez.

The shallow water location of the fields enables development by deviated drilling from onshore where all production facilities are located, for delivery of the oil via an 11 kilometer onshore pipeline to an established processing plant.

Production is scheduled for start-up around June this year. The development cost is expected to hit $60 million.