E&P | LNG | Operations Map

BG Group has played a leading role in the development of Egypt’s natural gas industry and is responsible for around a third of all gas produced in Egypt. The Group’s activities in Egypt span the gas chain from exploration, through development and production, to LNG.

North Gamasa 3D seismic completed West Delta Deep Marine (WDDM) Phase 7 pipeline project onstream WDDM Phase 8a project implementation WDDM Phase 8b sanctioned

Key dates

1995
Rosetta and WDDM Concessions awarded

2001
Rosetta onstream 2003 Scarab Saffron onstream

2004
Additional 40% in Rosetta acquired

2005
Egyptian LNG Trains 1 and 2 exports began

Simian, Sienna and Sapphire onstream

El Burg Offshore and El Manzala Offshore Concessions awarded

2009
Start-up of WDDM Phase 5 and Sequoia field unitised development

BG Group’s business in Egypt comprises:

• Operatorship of two gas-producing areas offshore the Nile Delta:
  • the Rosetta Concession (BG Group 80%, Edison 20%); and
  • the WDDM Concession (BG Group 50%, PETRONAS 50%).
    
    
• Operatorship of three other concessions offshore the Nile Delta:
  • El Manzala Offshore (BG Group 50%, Dana Petroleum 50%);
  • El Burg Offshore (BG Group 70%, PETRONAS 30%); and
  • North Gamasa Offshore (BG Group 100%).
    
    
• Major shareholdings in the Egyptian LNG project (Train 1 at 35.5% and Train 2 at 38%).

Upstream development and production activities in Egypt are undertaken through joint operating companies. In the case of Rosetta, this is through Rashid Petroleum Company (Rashpetco) in which BG Group has a 40% shareholding, and in the case of WDDM, this is through Burullus Gas Company (Burullus) in which BG Group has a 25% shareholding.

These operating companies are 50% owned by the Egyptian General Petroleum Corporation (EGPC), the body representing the Egyptian government in the petroleum sector. BG Group and its partners in each concession hold the remaining 50%.

Rosetta Concession

Rosetta started production in 2001 and supplies Egypt’s domestic market. In 2004, BG Group acquired a further 40% interest in Rosetta.

Sequoia

The unitised development (Rosetta Phase 4/ WDDM Phase 6) of the Sequoia field (BG Group 62.99%) which lies across the boundary of the WDDM and Rosetta Concessions was sanctioned in 2008. It consists of six sub-sea wells: three wells on each of WDDM and Rosetta which are tied back to existing infrastructure. First gas came onstream in 2009, with production delivered to both the domestic and export markets.

WDDM Concession

Since 1994, BG Group and partners have discovered 14 gas fields: Scarab, Saffron, Simian, Sienna, Sapphire, Serpent, Saurus, Sequoia, SimSat-P1 and SimSat-P2. Additional development leases were granted in 2007 for the Solar, Sienna-Up, Mina-1 and Silva discoveries.

Scarab Saffron

Scarab Saffron started production in 2003 and supplies gas to the domestic market and Damietta LNG. WDDM currently supplies up to 900 mmscfd to the domestic market including up to 150 mmscfd processed through the Damietta LNG plant.

BG Group through its wholly owned subsidiary BG Gas Marketing (BGGM) and its WDDM partner PETRONAS lift the corresponding volume of up to 1 mtpa of LNG. BGGM lifted its first cargo from Damietta in March 2005.

Scarab Saffron was the first deep water sub-sea development in Egypt. These facilities consist of eight sub-sea wells connected to a sub-sea manifold, in turn connected by pipelines to an onshore processing terminal. Electrical and hydraulic lines connect the wells to the onshore control room. The fields are located approximately 90 kilometres from the shore and in water depths of more than 700 metres.

Simian, Sienna and Sapphire

The Simian and Sienna fields produced first gas in 2005, for supply to Egyptian LNG Train 1 at Idku. The Sapphire field produced first gas in 2005, for supply to Egyptian LNG Train 2. The Simian, Sienna and Sapphire fields are located in WDDM approximately 120 kilometres offshore Idku, near Alexandria, in the Mediterranean Sea. The facilities consist of 16 sub-sea wells tied into the existing WDDM gas gathering network and a shallow water control platform. The onshore processing facilities form part of the Idku Gas Hub where the Egyptian LNG facilities are located.

WDDM additional phases

The WDDM fields have undergone a number of development phases to maximise hydrocarbon recovery. Phase 4 brought onstream seven additional wells during 2008 and with the addition of three Sequoia wells in 2009, this increased the total number of sub-sea wells in WDDM to 34.

In 2009, BG Group started incremental gas production through WDDM Phase 5, a compression project in this concession. The project included installation of two onshore gas turbine-driven compression sets, new absorption towers and associated equipment to extend plateau production from WDDM reservoirs. The project was designed to boost the pressure of processed gas into the grid, allowing field operations at lower pressures.

BG Group continues to evaluate future phases of WDDM development activity. The Group started execution of the Phase 7 additional third pipeline and compression project in 2010. Phase 7 comprises a new 68 kilometre, 36 inch offshore pipeline with associated onshore gas receiving facilities, a slug-catcher, adjacent to the two existing WDDM pipelines, and five new compressors. Incremental gas came onstream in January 2011 with the compression plant due onstream by end 2011.

Phase 8a was sanctioned in 2010 for the drilling, completion and tie-back of an additional nine sub-sea wells across WDDM planned for completion in late 2011. Early engineering and design for Phase 8b, an additional seven wells, has been completed and this phase has been sanctioned.

A three well workover programme was sanctioned in 2010 to re-work three Scarab wells with further drilling and workover programmes under evaluation for later delivery.

El Manzala Offshore and El Burg Offshore Concessions

In 2005, BG Group signed the El Burg Offshore (EBO) and El Manzala Offshore (EMO) concession agreements for the exploration of gas and oil with the Egyptian Natural Gas Holding Company (EGAS). Exploration drilling on EBO and EMO commenced in 2008.

In July 2010, BG Group farmed-out a 50% stake in the EMO concession to Dana Petroleum. BG Group retains 50% in EMO. Further exploration wells are scheduled on EMO in late 2011, and EBO in 2012.

North Gamasa Offshore Concession

In 2009, BG Group was awarded 100% of Block 1 (North Gamasa Offshore). The block covers an area of 281 square kilometres and is located 20 kilometres from the coast in shallow water. The concession agreement formalising the award was signed in early 2010. 3D seismic acquisition was completed in late 2010.

Egyptian LNG

BG Group and partners supply Trains 1 and 2 of Egyptian LNG with gas from the Simian, Sienna and Sapphire fields in WDDM. Together, these trains have a productive capacity of 7.2 mtpa of LNG.

The 3.6 mtpa productive capacity of Train 1 has been sold to GDF SUEZ under a 20-year SPA. The first LNG cargo was lifted in May 2005.

The 3.6 mtpa productive capacity of Train 2 has been sold to BGGM, a wholly owned BG Group subsidiary, under a 20-year agreement. BGGM may deliver this output to its capacity at Lake Charles in the USA or divert to other markets as part of its flexible portfolio approach. The first LNG cargo was lifted in September 2005.

The Egyptian LNG facilities, located at Idku, comprise the two LNG production trains and include the common facilities such as storage tanks, loading jetty and utilities. There is sufficient space at the Idku site for a further four LNG trains. The commercial structure of Egyptian LNG has been designed to allow future expansion without the need to involve all existing partners, and it is possible that third parties could supply gas to future Egyptian LNG trains.

The Egyptian LNG Company owns both the Egyptian LNG site and common facilities. Its sister company, Egyptian Operating Company for Natural Gas Liquefaction Projects (Opco) (BG Group 35.5%), undertakes the operation of all trains.

El Beheira Natural Gas Liquefaction Company (Train 1 Co.) (BG Group 35.5%) owns Train 1 and the Idku Natural Gas Liquefaction Company (Train 2 Co.) (BG Group 38%) owns Train 2.