BP plans $12bn investment in Egypt to increase gas supplies

BP is planning to spend over $12bn in Egypt in the next five years and increase gas supplies to the local market in the next decade.

BP Egypt country manager Hesham Mekawi was quoted by Reuters as saying: "BP is committed to unlock Egypt’s oil and gas potential and gradually double its gas supply during this decade. This will be achieved by injecting more than $12 billion in the next five years."

In Egypt, BP’s business is primarily in exploration and production. The company presently produces about 15% of Egypt’s entire oil production and close to 30% of the country’s gas production with its partners.

Egypt is going through an energy crisis and the country wants foreign firms to help overcome the situation.

Majority of global energy companies started operations in Egypt to develop energy for export.

The government has however switched energy supplies to the domestic market due to increase in consumption and fall in production decreased.

Egypt’s Oil Ministry said in November 2014 that the country intends to repay all its $4.9bn debt to foreign oil and gas firms within six months.

Reuters reported that payments have been delayed as the country’s economy was hurt by almost three years of instability since the end of Hosni Mubarak’s rule in 2011.

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Image: BP head office at 1 St James’s Square London, SW1Y 4PD, UK. Photo: Courtesy of BP p.l.c.