BP will spend US$1.5b in Egypt as country’s gas output falls
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The news: BP will invest around USD1.5 billion ($3.85 billion) in Egypt over the coming three to four years, according to information viewed by Bloomberg, in order to develop gas projects and drilling.
The numbers: The investment comes after the oil and gas major announced it plans to form a gas-focused joint venture with Abu Dhabi National Oil Co (ADNOC) in Egypt last month, with BP owning 51% to ADNOC’s 49% of the JV.
BP is set to continue holding around 70% of its existing interests in the country outside the ADNOC JV.
The context: Egypt’s gas production has fallen dramatically as domestic output has been hit by natural declines at its gas fields. The country has also been shipping excess LNG to Europe outside the summer months in efforts to soften the impact of choked Russian supply.
The European Union also announced on Wednesday that its latest tender to buy gas jointly was three-times oversubscribed. The tender, launched earlier this month, attracted offers from international suppliers to sell 97.4 billion cubic metres (bcm) of gas to 19 European buying companies which had asked for 34 bcm, the Commission said in a statement.
The sources: Bloomberg, European Commission Press Release
