DEA Deutsche Erdoel AG has farmed out its stake in the West Nile Delta project in Egypt to its joint venture partner (and operator) BP PLC “in order to better balance its portfolio,” the company reported.
The deal includes the sale of a portion of DEA’s stake in the ongoing Phase 1 development of 5 tcf of gas resources. “With the remaining interest of 17.25% in both concessions, West Nile Delta will remain the largest project in DEA’s portfolio,” the company said. The closing of this agreement is subject to approval of Egyptian General Petroleum Corp.
The $12-billion West Nile Delta project, which is planned to start production in 2017, is expected to produce 1.2 bcfd, or about 25% of Egypt’s current gas production.
The timing of the farm down coincides with the ramping up of the capital intensive phase of the West Nile Delta project development. Recently, a major project milestone has been achieved when the development drilling campaign started with the spudding of the first development well in Taurus-Libra field. This is the first of a total of 21 planned development wells in Taurus, Libra, Giza, Fayoum, and Raven fields, DEA said.