CAIRO – BG Group’s Egyptian subsidiary says that it plans to invest $2 billion to install a pipeline and drill new wells off Egypt’s Mediterranean coast, according to a Reuters report.
The country’s largest natural gas producer, BG Egypt says it expects the new offshore pipeline, its third in the West Delta concession, to be operational by the end of this year, and enable the firm to maintain its current production levels.
The firm will also drill nine wells in West Delta, which will be operational by late 2011, BG Egypt President Arshad Sufi said. “Gas demand in Egypt is going up, and increased demand helps promote exploration,” Sufi was quoted to have said.
BG Group was one of six firms that won offshore oil and gas blocks in the Mediterranean in February.