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.
Rosetta and WDDM Concessions awarded
Scarab Saffron onstream
Additional 40% in Rosetta acquired
Egyptian LNG Trains 1 and 2 exports began
Simian, Sienna and Sapphire onstream
El Burg Offshore and El Manzala Offshore Concessions awarded
Start-up of WDDM Phase 5 and Sequoia field unitised development
WDDM Phase 7 pipeline project onstream
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 started production in 2001 and supplies Egypt’s domestic market. In 2004, BG Group acquired a further 40% interest in Rosetta.
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.
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.
WDDM supplies gas to the domestic market, Egyptian LNG at Idku and the third-party Damietta LNG plant.
Scarab Saffron started production in 2003. The field supplies gas to the domestic market and 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 seven additional wells onstream during 2008, while Phase 6 added three Sequoia wells in 2009.
In 2009, BG Group started incremental gas production through the WDDM Phase 5 compression project. 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.
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 through the 36-inch pipeline came onstream in 2011 and the compression plant came into operation in January 2012.
Phase 8a, comprising the drilling, completion and tie-back of an additional nine sub-sea wells across WDDM came onstream in late 2011. In June 2012, gas production from the Phase 8b deep water development project came onstream. Phase 8b is an extension of the existing deep water sub-sea infrastructure and will tie in eight sub-sea wells by the end of 2012. With the completion of the Phase 8a and 8b projects, the WDDM Concession will have a total of 51 sub-sea wells.
WDDM Phase 9 is currently being assessed and is planned to include additional infill wells, new development wells and further workover programmes in order to continue development of the concession.
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 2010, BG Group farmed-out a 50% stake in the EMO concession to Dana Petroleum. BG Group retains 50% in EMO. The Zonda well was drilled in 2011 on EMO but failed to discover commercial hydrocarbons. A two-well programme on EBO commenced in 2012. The first well, Harmattan Deep-1, was declared a discovery in July, while the high impact Notus well is expected to be drilled in late 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 2010.
BG Group and partners supply Trains 1 and 2 of Egyptian LNG with gas from the Simian, Sienna, Sapphire and Sequoia 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 which is operated by GEMS, 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.
Egyptian LNG Company owns both the Egyptian LNG site and common facilities. Its sister company, The Egyptian Operating Company for Natural Gas Liquefaction Projects (Opco) (BG Group 35.5%) undertakes the operation of all trains and common facilities.
El Beheira Natural Gas Liquefaction Company (Train 1 Co.) (BG Group 35.5%) owns Train 1 and Idku Natural Gas Liquefaction Company (Train 2 Co.) (BG Group 38%) owns Train 2.