BP said it started gas production from the Atoll phase one project, offshore Egypt, delivered ahead of schedule and below cost.
The project is now producing 350 million cubic feet of gas a day (mmscfd) and 10,000 barrels a day (bpd) of condensate, BP said in a statement. Gas production from the field is directed to Egypt’s national grid.
Atoll is the first new project to come into production for BP in 2018, adding to the series of higher-margin projects successfully brought online over the past few years.
The project, in the North Damietta concession in the East Nile Delta, was delivered seven months ahead of schedule and 33 per cent below the initial cost estimate.
The 13 projects that started-up through 2016 and 2017 provided more than 500,000 barrels of oil equivalent a day (boed) of new net production capacity and total net production from BP’s new projects is now expected to be 900,000 boed by 2021.
“The longstanding partnerships we have in Egypt allowed us to fast-track Atoll’s development and deliver first gas only 33 months after discovery,” said Bob Dudley, BP group chief executive.
“This is a further demonstration of our commitment to help realise Egypt’s oil and gas potential and meet the increasing demand from its growing population.”
BP announced the Atoll discovery in March 2015. The main reservoir in the field contains an estimated 1.5 trillion cubic feet (tcf) of gas and 31 million barrels of condensates and further segments are under evaluation.
The Atoll phase one project is an early production scheme involving almost $1 billion investment, BP said. The project involved recompletion of the original exploration well as a producing well and the drilling of two additional production wells, completed August 2015 to February 2017.
Production is exported to the existing onshore West Harbor gas processing plant. Installation of the necessary subsea infrastructure and upgrading of onshore facilities was completed ahead of schedule.
Hesham Mekawi, regional president, BP North Africa said: “Atoll is our first major project in Egypt to be delivered in 2018, following the West Nile Delta Taurus and Libra project and then Zohr last year. We are extremely proud of Atoll’s efficient execution through our joint venture, the Pharaonic Petroleum Company. Delivering this project at such an unprecedented pace, less than two years after sanction, and with an impeccable safety record is a tremendous achievement.”
BP started operations in Egypt 55 years ago, with total investments so far of approximately $30 billion, making BP one of the largest foreign investors in the country, it said.