Less than eight months after its discovery, BP and the Egyptian government signed a heads of agreement to rapidly progress the development of the Atoll deepwater field offshore Egypt as early as 2018.
BP's offshore Egypt operations using the Maersk Discoverer. Image from BP.
BP’s 100%-owned Atoll discovery is located in the North Damietta Offshore Concession in the East Nile Delta.
The deal will enable first production to be expedited from an estimated 1.5 Tcf of gas resources and 31 MMbbl of condensates in the Atoll field to the domestic market, with production anticipated to begin in 2018, BP said.
Atoll will consist of two phases, with the first phase consisting of two development wells tied back to existing infrastructure, and production expected to start up in 2018. According to the UK supermajor, the success of Atoll’s first phase is expected to trigger additional investment and further wells to increase production.
In March, BP announced the Atoll-1 deepwater discovery in the East Mediterranean Sea, using the Maersk Discoverer and encountered about 50m of gas pay in high quality Oligocene sandstones.
At the time, BP said Atoll was expected to be the deepest well ever drilled in Egypt at 6400m. Atoll followed the company’s 2013 Salamat discovery, located 15km south of Atoll.
By 2010, BP said it expects to sustain its current oil production and double its gas production in Egypt to reach 2.5 Bcf/d, which represents more than 50% of Egypt’s current gas production.
The of development of Atoll will be executed and operated by Pharaonic Petroleum Co. (PhPC), BP’s joint venture with EGAS and Eni.