DEA Deutsche Erdoel AG has completed the farm-down of its stake in the West Nile Delta (WND) project in Egypt. Its share in all WND fields is now equalized at 17.25%. The share reduction was part of the company’s portfolio optimization. DEA remains committed to Egypt’s energy production.
The WND development of five trillion cubic feet of gas resources offshore Egypt is the largest project in DEA’s current portfolio. The deal, signed in May, also included a restructuring of the project and an adaption of DEA’s shares in all WND fields. The farm-down has now been completed following the approval of the Egyptian General Petroleum Corporation (EGPC) and Egyptian Ministry of Petroleum.
The project is scheduled to start production in 2017. The WND fields are expected to produce 1.2 billion cubic feet per day, which constitutes approximately 25 percent of Egypt’s current gas production.
“For DEA, this is another step forward in streamlining our portfolio. On the one hand, we balance our exposure, on the other hand we grow by adding production and opportunities, like currently in Norway,” said Thomas Rappuhn, CEO of German-based DEA Deutsche Erdoel AG. “We remain strongly committed to Egypt as one of our core countries and continue to work hard with our partner BP to put West Nile Delta on stream in time and budget.”
DEA has been operating successfully in Egypt since 1974 as partner and operator. Since 1984, over 640 million barrels of crude have been produced by DEA as an operator in the Gulf of Suez. In addition, DEA’s Disouq gas development project in the onshore Nile Delta has recently allowed the company to double its daily oil and gas production in Egypt.
(DEA Group Press Release)