More wells planned for Egyptian deepwater concession

Offshore staff

READING, UK – Burullus Gas Co. has sanctioned Phase VIIIb, the next stage of the West Delta Deep Marine Concession (WDDM) development offshore Egypt’s Nile Delta. Under Phase VIIIb, Burullus will bring onstream seven additional wells, allowing it to meet its contracted gas commitments.

According to Burullus partner BG Group, this is one of a series of investments designed to maintain production from the deepwater concession in the Mediterranean Sea which supplies gas for Egypt’s domestic and export needs.

In January, the WDDM Phase VII third pipeline became operational, and the associated compression project is due on stream later this year. First-stage drilling for Phase VIIIa has been completed, with first gas expected late in 2011. This phase will eventually bring onstream nine new subsea wells.

Despite continuing sporadic disruption from social unrest in Egypt, the impact on BG Group’s production has been relatively small of late, the company claims. The same situation applies to its activities in Tunisia, with production continuing to build from the offshore Hasdrubal field.

In East Africa, BG Group has received approval from the government of Tanzania to become operator of offshore blocks 1, 3, and 4, effective from July 1.

To date, three successful exploration wells have been drilled. Under the operatorship transition arrangements, BG Group has spearheaded numerous activities over recent months in preparation for the next stage of exploration and appraisal, slated to start in late 2011.

07/27/2011