BP sanctions fast-track development of Egypt’s Atoll Phase 1
BP PLC and Egyptian Natural Gas Holding Co. (Egas) have sanctioned development of the Atoll Phase 1 project in the North Damietta offshore concession in the East Nile Delta.
The project will bring as much as 300 MMscfd of gas (gross) to the Egyptian market beginning in first-half 2018. Atoll field is estimated to hold 1.5 tcf of gas and 31 million bbl of condensates.
Atoll Phase 1 is an early production scheme (EPS) involving the recompletion of the existing exploration well as a producing well, the drilling of two additional wells, and the installation of the necessary tie-ins and facilities required to produce from the field.
The Atoll wells will be drilled by Ensco PLC’s DS-6 ultradeepwater drillship, which arrived in Egypt last month and is expected to start drilling in August for roughly 24 months. BP says success with Atoll Phase 1 EPS could lead to further investment in the Atoll Phase 2 full field development.
The firm recently completed multiple transportation and processing agreements accelerating development of Atoll. Onshore processing will be handled by the existing West Harbour gas processing facilities.
BP reported the Atoll discovery in March 2015 (OGJ Online, Mar. 9, 2015). The Atoll heads of agreement was signed 8 months later (OGJ Online, Nov. 5, 2015). BP has 100% interest in the concession.
