BP takes over control of deepwater Nile Delta concession

BP PLC has taken full control of the West Mediterranean Deep Water Area Concession in the offshore Nile Delta area with the acquisition, announced Thursday, of TotalFinaElf SA's 50% interest. The deal, for an undisclosed sum, gives BP as operator a 100% interest in the concession, where a first exploration well is to be spudded later this year.


By the OGJ Online Staff

LONDON, July 5 -- BP PLC has taken full control of the West Mediterranean Deep Water Area Concession in the offshore Nile Delta area with the acquisition, announced Thursday, of TotalFinaElf SA's 50% interest.

The deal, for an undisclosed sum, gives BP as operator a 100% interest in the concession, where a first exploration well is to be spudded later this year.

Recently appointed BP Egypt Pres. Hesham Mekawi said the Nile Delta deal represented a "further deepening of (the company's) interests in a core exploration area.

"It complements our positions in the adjacent North Alexandria and North Idku concessions, where we have enjoyed four recent successful exploration wells, proving up over 2 tcf of new gas resources," said Mekawi.

The West Mediterranean Deep Water Area Concession was awarded to BP and Elf Hydrocarbures Egypte in May 1999 for an initial term of 5 years with a commitment to spend $48 million and drill one well.

More in Companies