BG Egypt today announced the start of incremental gas production on 19 January 2011 through the first part of Phase 7 of the West Delta Deep Marine (WDDM) Concession (BG Group 50%, PETRONAS 50%).  This represents another successful milestone in the phased development of WDDM.

Managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50%,
BG Group 25%, PETRONAS 25%), Phase 7 comprises a new 68 km, 36 inch offshore pipeline with associated onshore gas receiving facilities, a slug-catcher, adjacent to the two existing WDDM pipelines, and five new compressors. This latest phase is designed to help maintain plateau gas production from the Concession.  The initial incremental production is through the new pipeline, with the compression plant expected to start-up later this year.

Three innovative offshore subsea hot-taps with duplex stainless steel were installed to tie the new pipeline into the existing pipeline. These operations were delivered without shutting down the existing pipeline, and as such did not interfere with production. The project was executed safely in an area with existing onshore and offshore activities.

Commenting on the project, BG Egypt President Arshad Sufi said: “We are very pleased with the latest field development phase, which has been delivered under budget and ahead of schedule. The delivery of the first part of Phase 7 marks yet another success realised through the commitment of
BG Egypt and its partners to the sustained development of the Concessions to ensure continued gas supply.”

EGPC affiliate companies performed key roles across the project.  ENPPI were responsible for the design and procurement of onshore facilities; Petrojet performed the construction work, in addition to the supply and fabrication of the slug-catcher; Petroleum Marine Services (PMS) executed the offshore shallow water pipe lay and beach approach; Allseas carried out the deepwater pipe lay; and, Technip executed the hot-taps tie-in and the commissioning of the offshore pipeline. During peak activity, the project generated employment for 1,500 people.

Burullus Gas Company S.A.E. managed the work with minimal environmental impact allowing continuous beach access to local fishermen, and restoring it to its original status immediately after work was concluded.