Upstream Production | Exploration | Downstream Projects | Operations Map

Start-up of the West Delta Deep Marine (WDDM) Phase V project Start-up of the Sequoia field unitised development project North Gamasa Offshore Concession was awarded (and is awaiting signature)

Egypt is a core part of BG Group’s global portfolio and a cornerstone of its Atlantic Basin LNG strategy. BG Group is also one of the largest investors in Egypt’s natural gas business. BG Group’s activities in Egypt span the gas chain from exploration, through development and production, to downstream projects in LNG.

Key dates

1995
Rosetta and WDDM Concessions awarded

2001
Rosetta onstream

2003
Scarab Saffron onstream

2004
Additional 40% in Rosetta Concession acquired

2005
Egyptian LNG Trains 1 and 2 exports began

Simian, Sienna and Sapphire onstream

El Burg Offshore and El Manzala Offshore Concessions awarded

2008
New domestic pricing terms agreed with Egyptian government

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 100%);
  
  – El Burg Offshore
  (BG Group 70%, PETRONAS 30%); and
  
  – North Gamasa Offshore (BG Group 100%) (concession awarded and is awaiting signature);
  
  
• Major shareholdings in the Egyptian LNG project (Train 1 at 35.5% and Train 2 at 38%).

BG Group undertakes upstream development and production activities in Egypt through joint operating companies. In the case of Rosetta, this is the Rashid Petroleum Company (Rashpetco) in which BG Group has a 40% shareholding, and in the case of WDDM, this is 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 network. In 2004, BG Group acquired a further 40% interest in Rosetta.

In first quarter 2008,
BG Group delivered first gas from the Rosetta Phase III field development plan which completed in third quarter 2008. The project consists of five wells tied back to the first two phases of Rosetta. The next phase of development is that of the Sequoia field.

Sequoia

The unitised development (Rosetta Phase IV/WDDM Phase VI) of the Sequoia field (BG Group 62.99%) which lies across the boundary of the WDDM and Rosetta Concessions was sanctioned in second quarter 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 August 2009, with production delivered to both the domestic and export markets.

WDDM Concession

BG Group and partners have drilled 34 successful exploration and appraisal wells in WDDM since 1997, discovering 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 and Silva discoveries.

Scarab Saffron

Scarab Saffron started production in 2003 and supplies gas to the domestic market and Damietta LNG. BG Group currently supplies 900 mmscfd under the domestic GSA.

Under an agreement signed with EGAS in 2004, gas has been de-dedicated for five years from the domestic GSA so that, since February 2005, some of the gas has been processed through the Damietta LNG plant for a tolling fee. In 2009, this amounts to 150 mmscfd. BG Group through its wholly owned subsidiary BG Gas Marketing (BGGM) and its WDDM partner PETRONAS lift the corresponding volume (1mtpa) 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 Phase IV and Phase V

The WDDM fields have undergone a number of development phases to maximise hydrocarbon recovery. Phase IV brought onstream seven additional wells during 2008, bringing the total number of sub-sea wells in WDDM to 31.

In May 2009, BG Group started incremental gas production through WDDM Phase V, a compression project in this concession. The project includes 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 is currently evaluating future phases of WDDM that will extend the current production plateau. The Group sanctioned Phase VII in 2009.

In September 2008, the Government (through EGPC) agreed new pricing terms for the gas sold into the domestic market. The price increase is being phased in over the period 2008-2011.

EXPLORATION	back to top

El Manzala Offshore and El Burg Offshore Concessions

In 2005, BG Group signed El Burg Offshore and El Manzala Offshore concession agreements for the exploration of gas and oil with the Egyptian Natural Gas Holding Company (EGAS). Exploration drilling on El Manzala Offshore and El Burg Offshore commenced in 2008. BG Group is currently planning the forward exploration programme for these areas for 2010.

North Gamasa Offshore Concession

In April 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 initial work programme will most likely involve the acquisition of 3D seismic data. North Sidi Kerir Deep Concession BG Group notified EGAS of its intention to relinquish its interest in the North Sidi Kerir Deep Concession, effective July 2009.

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, producing a total of 7.2mtpa of LNG.

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

The 3.6mtpa output 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.

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.

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