Cairo: BP to invest big in Egypt

More than $1 billion planned by British supermajor in Egypt.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  May 13, 2014 at 9:16 AM
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CAIRO, May 13 (UPI) -- British energy company BP aims to invest about $1.5 billion in the Egyptian oil and gas sector, the Egyptian government said.

State-run media in Egypt said Monday representatives from BP met Prime Minister Ibrahim Mahlab and Oil Minister Sherif Ismal in Cairo to discuss work in the Egyptian energy sector. The government said the delegation welcomed Egyptian efforts to overcome "obstacles facing companies working on the Egyptian market."

BP's counterpart, BG Group, expressed concern about its future operations in Egypt, citing continued diversions of natural gas to the domestic market. No cargoes of liquefied natural gas left Egypt during the first quarter of 2014 and the company said it produced 66,000 barrels of oil equivalent per day in Egypt, down 35 percent from fourth quarter 2013.

The Egyptian government said BP is investing $1.5 billion in the oil and gas sector during the second half of the year. There was no public statement from BP about the Egyptian government's statement.

Egypt expects to draw in international investors to an auction for nearly two dozen exploration licenses set for July.

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