BP Egypt has been awarded exploration rights in the East Warda block in the offshore Gulf of Suez and blocks 12 and 13 in the Northern Red Sea.

The first concession is the East Warda block with an area of 545 sq km, lying north of the October field and close to existing infrastructure. During the initial three years period of the concession, BP Egypt is committed to acquiring a 3D seismic survey and drilling at least one well and to spend $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.

The second concession is blocks 12 and 13, with total area of 12,500 sq km in the north part of the Red Sea area. The initial period of the concession is three years, in which BP Egypt will conduct a high-resolution aeromagnetic survey over the whole concession area and spend one million dollars. In addition BP will conduct a 3D seismic survey of about 1,500 sq km for $8 million. During the two extension periods of 4 years each, BP is committed to spend $50 million on exploration activities.

03/26/04