The British company BP plans to invest about $1.5 billion in Egypt over the next few years to develop gas and drilling projects in the country.
Bloomberg reported that this investment, which will be specific to the company, comes after the British company announced earlier this month a joint project focusing on gas in Egypt with the Abu Dhabi National Oil Company.
A company spokesperson said in an email response to Bloomberg that the new spending will occur over the next three to four years.
The company will continue to retain about 70 percent of its current interests in Egypt outside the joint venture with Abu Dhabi Oil Company.
The partnership, which is expected to be completed in the second half of this year, will include three of the British company’s development projects as well as exploration projects.
Abu Dhabi Oil Company will provide a “proportionate cash contribution” to help finance future growth opportunities, according to the agency.
Gas production in Egypt fell to its lowest levels in years, with the domestic product affected by the natural decline of the fields, according to Bloomberg calculations.
Egypt is working to ship surplus liquefied natural gas to Europe outside the summer months, as the continent seeks to expand its capacity to reduce the impact of Russia’s stranglehold on supplies.
News of the new investment comes after the announcement of the Ras El Hekma development project in Egypt, for which the Egyptian government signed a partnership agreement with the UAE Holding Company (ADQ).
There is now talk about developing Ras Jamila land in Sharm El-Sheikh on the Red Sea in South Sinai, after news of Saudi investors entering the development project.
