The cash injection is to be used to aid production of up to three billion barrels of oil equivalent from BP’s West Nile Delta, East Nile Delta and Gulf of Suez operations in Egypt.
BP said the West Nile Delta project is a particularly major one, with a development target of five trillion cubic feet of gas resources and 55m barrels of condensate.
The project is expected to reach up to 1.2bn cubic feet a day, equivalent to more than 25 per cent of Egypt’s current production. Thousands of jobs are expected to be created during construction of the project.
Bob Dudley, BP’s chief executive, said the deal was “another vote of confidence in Egypt” and added that BP is “keen to play a key role in securing the country’s energy future”.
Meanwhile, Sherif Ismail, the Egyptian minister of petroleum and mineral resources, said the agreement was “another key milestone in our long term partnership with the company”.