BP commits to big Egyptian investments

CAIRO, Nov. 10 (UPI) -- British energy company BP said Monday it was committed to investing heavily in the Egyptian energy sector for the benefit of the Egyptian people.

BP said it committed to invest $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.

"Exploring the two blocks will require substantial investments to unlock their potential, and will be done as part of our commitment to meeting Egypt's energy needs," Hesham Mekawi, regional president for BP, said in a statement.

BP said it will spend at least six years on exploration and production in the area.

BP's announcement follows a downgrade from rival BG group, which said last month it expects its Egyptian gas production to decline.

BG Group said its activities in Egypt accounted for 10 percent of its production and around 3 percent of its earnings during the third quarter. Output from exploration and production operations in the country was 55,000 barrels of oil equivalent per day, 51 percent less than the same period for 2013.

BP said it produces almost 40 percent of the oil in Egypt through its regional partnerships and accounts for nearly 30 percent of total natural gas production.