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BG Group updates Egyptian well system

Overhaul follows disappointing year for company.

By Daniel J. Graeber

CAIRO, Sept. 2 (UPI) -- British energy company BG Group said its Egyptian subsidiary completed an overhaul of infrastructure needed to add new wells to its offshore operations.

The so-called Phase 9a project upgrades the company's complex off the coast of Egypt in the Nile Delta.

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"The new well control system can now manage the production from additional wells simultaneously and provides the capacity for future potential developments," the company explained.

The company in January said the Egyptian government wasn't honoring agreements regarding its share of natural gas from Egyptian fields, adding diversions into the domestic market were higher than expected.

Only one cargo of liquefied natural gas was taken from Egypt by BG Group for the second quarter. With declining upstream production, the company said it expects LNG operations in the country will be limited going forward.

BG Egypt President Arshad Sufi said in a statement, however, the investment in the Nile Delta exemplifies the company's commitment to Egypt.

"This [new program] has meant we have been able to supply much needed gas to our customers and partners which has helped to support the Egyptian economy," he said Sunday.

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