German company DEA has sold its stake in the $12bn West Nile Delta (WND) project in Egypt to its joint venture partner and operator BP.
The deal will enable the company to balance its portfolio, and includes the transfer of a portion of its stake in the ongoing phase 1 development of five trillion cubic feet of gas resources.
With the remaining interest of 17.25% in North Alexandria and West Mediterranean Deepwater concessions, WND is said to remain the largest project in DEA’s portfolio.
“Recognising the world-scale of the development, divestment is in line with our strategy to manage risk through greater portfolio diversification.”
Scheduled to begin production in 2017, the WND project is expected to produce 1.2 billion cubic feet per day, which is equal to 25% of the Egypt’s existing gas production.
DEA CEO Thomas Rappuhn said: “WND is a key part of our portfolio and a strategic project for Egypt, which we are committed to delivering with our partner BP.
“Recognising the world-scale of the development, divestment is in line with our strategy to manage risk through greater portfolio diversification.”
The sale was also aimed at restructuring the partnerships agreements to expedite the decision-making process.
Recently, a development drilling campaign started with the spudding of the first development well in the Taurus / Libra field, with gas to be produced fed into the country’s national gas grid.
According to DEA, the closing of the deal is subject to approval of the Egyptian General Petroleum Corporation (EGPC).
