The company “BP” (BP) intends to invest about 1.5 billion dollars in Egypt over the next few years, as part of its quest to develop gas and drilling projects in the largest Arab country by population. This spending will be exclusively from BP, and comes on the heels of the announcement by the London-based company that it will form a joint venture focused on gas in Egypt, with the company “ADNOC”. A BP spokesman, in response to questions by e-mail, said that the new spending will be carried out over the next three to four years, “he said.
While the rest of the company’s projects are outside the framework of this partnership, it will account for 70% of its business in Egypt. This partnership, expected to be completed in the second half of the year, will include stakes in 3 of BP’s development concessions as well as exploration projects”.
The two companies said at the time that Adnoc would make a “proportionate cash contribution” to help fund future growth opportunities. Gas production in Egypt has fallen to its lowest level in years, as local production was affected by natural declines in the fields, according to the calculations of “Bloomberg”. At the same time, the country is shipping surplus LNG to Europe outside the summer months, as the continent seeks to soften the blow caused by Russia by strangling supplies.
