BP and the Egyptian Natural Gas Holding Co. (EGAS) have sanctioned the development of the Atoll Phase One project.
The development is an early production scheme (EPS) that will bring up to 300 MMcf/d of gas to the Egyptian domestic gas market starting in first-half 2018.
The project involves the recompletion of the existing exploration well as a producing well, the drilling of two additional wells and the installation of the necessary tie-ins and facilities.
The Atoll wells will be drilled by the DS-6 rig, which arrived in Egypt in May and is expected to start drilling in August for roughly the next 24 months. Success of the Atoll Phase One EPS could lead to further investment in the Atoll Phase Two full field development.
BP announced the Atoll discovery in March 2015. The Atoll-1 deepwater exploration discovery well in the North Damietta Offshore concession in East Nile Delta was drilled using the 6th generation semisubmersible rig Maersk Discoverer. The exploration well reached a depth of 6,400 m and penetrated about 50 m of gas pay in high-quality sandstones. BP has a 100% interest in the concession.
BP recently completed multiple transportation and processing agreements accelerating the development of the Atoll Field, which contains an estimated 1.5 Tcf of gas and 31 MMbbl of condensate. Onshore processing will be handled by the existing West Harbour gas processing facilities.
Recommended Reading
Exclusive: Renewables Won't Promise Affordable Security without NatGas
2024-03-25 - Greg Ebel, president and CEO of midstream company Enbridge, says renewables needs backing from natural gas to create a "nice foundation" for affordable and sustainable industrial growth, in this Hart Energy Exclusive interview.
ARC Resources Adds Ex-Chevron Gas Chief to Board, Tallies Divestments
2024-02-11 - Montney Shale producer ARC Resources aims to sign up to 25% of its 1.38 Bcf/d of gas output to long-term LNG contracts for higher-priced sales overseas.
Exclusive: Andrew Dittmar Expects Increased Public M&A in 2024
2024-02-15 - In this Hart Energy LIVE Exclusive, Andrew Dittmar, Enverus Intelligence's senior vice president, compares 2023 consolidation to what he expects in 2024, including more public to public deals.
Exclusive: Despite Uncertainty, NatGas Balances Out
2024-03-04 - McKinsey and Co.'s Luciano Di Fiori says the natural gas market is capable of balancing itself out—despite LNG permit approval pauses, midstream constraints and dependence on oil production—in this Hart Energy LIVE Exclusive interview with Editorial Director Jordan Blum.
Exclusive: Activists Sending 'Wrong Signal' on US LNG
2024-02-23 - Anne Bradbury, the CEO of the American Exploration & Production Council, says the Biden administration's pause on U.S. LNG export approvals sends a wrong message about the importance of LNG to the American economy and the climate, in this Hart Energy LIVE Exclusive interview.