CAIRO, Dec. 9 (UPI) -- An Egyptian subsidiary of British energy company BP said it strengthened its foothold offshore Egypt through a deal with a German counterpart.
For an undisclosed sum, BP Egypt took greater control over Egyptian acreage through a deal with Germany energy company DEA Deutsche Erdoel. The acquisition gives BP an 82.75 percent stake in concessions in the West Nile Delta.
Hesham Mekawi, regional president for BP, said in a statement the West Nile Deal is a strategic part of the company's North African portfolio.
"This deal is another example of our commitment to help unlock Egypt's oil and gas potential through continued investments," he said.
BP last year committed to investing $240 million on developing two new exploration blocks near the Nile Delta and in the northwestern Egyptian waters of the Mediterranean Sea through a partnership with Emirati energy company Dana Gas.
BP said it will spend at least six years on exploration and production in the area. The company at one time produced almost 40 percent of the oil in Egypt through its regional partnerships and nearly 30 percent of total natural gas production.
The West Nile Delta project involves the development of 5 trillion cubic feet of potential reserves. Full-scale production, expected to being in 2017, will be around 1.2 billion cubic feet of gas per day, which represents about a quarter of the country's total.
BP is one of the largest foreign investors in Egypt.
