BP Commits $229M to Three Offshore Blocks with Eni and Total

BP Commits $229M to Three Offshore Blocks with Eni and Total
Offshore drilling rig, Gulf of Mexico

BP Plc announced on Wednesday that it had been awarded three new offshore exploration blocks in Egypt with a total investment commitment of $229 m from BP and its partners, report Reuters.

BP said it would have 100% equity and operate the North El Tabya block, while the North Ras El Esh Block will be operated by BP but with only a 50% equity. The remaining stake will be held by a subsidiary of Italy’s ENI SpA, IEOC.

As for the third block, North El Hammad, this will be operated by IEOC with BP enjoying a 37.5% equity.

According to Trade Arabia, BP Egypt was awarded these three new blocks during the 2015 bid round organized by EGAS.

The first block is deep water and covers an area of 2084 sq km, the second 1389 sq km and the third 1927 sq km, both shallow water. The third block will also be shared with France’s Total at 25% equity, leaving IEOC with 37.5%.

Hesham Mekawi, BP North Africa regional president, said: “BP is proud of the successful partnership it has had with Egypt for more than 50 years. Continuing to play a key role in the development of Egypt’s energy sector, BP will deploy its expertise and latest technologies to exploit the resources in these new blocks. This investment confirms our commitment to meet Egypt’s energy needs.”

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