BG Egypt, a subsidiary of BG plc, and its partner in the concession, Edison International SpA, today announced a new gas discovery following the successful testing of an exploration well in the West Delta Deep Marine concession in Egypt. This exploration well is the tenth consecutive successful exploration well drilled by BG in the Nile Delta area over the past two years, giving a 100 per cent success rate.

The well, WDDM-5 (P12/P13), tested 45 million standard cubic feet of gas per day (mmscfd) and was drilled in a water depth of 530 metres. The production rate was restricted by the testing equipment.

Options for further drilling in the highly prospective West Delta Deep concession are under evaluation. Both domestic and export markets are being considered for the development of this region. BG submitted a bid to supply LNG to Turkey during 1998 and this discovery demonstrates one option to realise this supply.

The WDDM-5 well follows the discovery of the gas fields known as Saffron and Scarab in which three exploration and appraisal wells were successfully tested in 1998, one testing in excess of 90 mmscfd. An additional well to appraise the Saffron-1 discovery was successfully completed in April 1999. The well, Saffron-2, had similar positive characteristics to the previously tested Scarab and Saffron wells and was therefore not tested.

Following award of a development lease around the Saffron and Scarab discoveries, field development plans are being finalised to undertake the first deep-water gas field development in Egypt. Gas will be supplied into the domestic market.

Notes to Editors

The West Delta Deep Marine drilling programme follows the drilling of four successful wells by BG, Shell and Edison in the Rosetta concession, also in the Nile Delta. BG and its partners have a gas sales agreement with Egyptian General Petroleum Corporation (EGPC) to supply gas from Rosetta.

EGPC will receive first gas from Rosetta in 2000, and production will rise to 275 mmscf/d. The gas will be delivered into the national grid system south-east of Alexandria.

This year, BG is planning to drill an exploration well within the Rosetta concession.

West Delta Deep Marine: BG's partner in the concession is Edison International SpA with 50 per cent interest. BG is operator.

Rosetta: BG is operator with 40 per cent interest. Its partners are Shell and Edison International SpA with 40 and 20 per cent respectively. The day to day activities relating to the Rosetta Concession are being undertaken by Rashid Petroleum Company (Rashpetco), a Joint Venture between EGPC and the BG, Shell and Edison International Partnership with 50, 20, 20 and 10 per cent interests respectively.

Franchise Agreement: The Nile Valley Gas Company (NVGC), formed by BG and its partners Edison International SpA, Orascom and Middle East Gas Association, delivered gas to its first customer, Beni Suef Cement, in April this Year. NVGC is undertaking the development of the gas market and infrastructure in Upper Egypt under an exclusive 25-year franchise agreement with EGPC.