BP Egypt gains two concessions

BP Egypt has been awarded exploration rights in the South Abu Zeneima and LL87 blocks, in the offshore Gulf of Suez in two bid rounds. The first concession is the South Abu Zeneima block with 150 sq. km, east of the October field and close to existing infrastructure. The initial period of the concession is three years, with two optional extension periods of three years each.

BP Egypt has been awarded exploration rights in the South Abu Zeneima and LL87 blocks, in the offshore Gulf of Suez in two bid rounds.

The first concession is the South Abu Zeneima block with 150 sq. km, east of the October field and close to existing infrastructure. The initial period of the concession is three years, with two optional extension periods of three years each.

"We are committed to drilling at least one well and to spend a minimum of $7 million during the initial exploration period with the potential to drill two more wells and spend an additional $10 million during the extension periods," said Hesham Mekawi, president of BP Egypt. The company also plans to acquire 3D seismic for the block during the second half of January to allow drilling the first well later in the year.

The second concession is the LL87 block with 15 sq km, lying between East Shukheir Marine and the Merged concession, east of the new Edfu field. The initial period of the concession is one year with one extension of two years.

"In this concession, we are committed to drill at least one well and to spend a minimum of $5 million during the initial exploration period with the potential to drill one additional well and to spend an additional $5 million during the extension period. We plan to drill the Saqqara-1 well in this block as soon as the rig becomes available," says Mekawi.

During 2003, BP Egypt plans to drill three exploratory wells in the Gulf of Suez and to complete the high resolution aeromagnetic survey of 13,000 sq km in addition to a 3D seismic survey to cover the new leases. BP Egypt is also looking for other opportunities in the Gulf of Suez and bid for six other blocks in the Gulf of Suez and the Red Sea in November 2002. Results of these bids will be announced shortly.

01/17/03

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