Petroleum Africa
Find us on: 
Monday, July 29, 2013
BG Group said it is reviewing further investments in Egypt in light of the civil and political unrest in the North African country. Currently the country accounts for an estimated one-fifth of BG’s production.
“Events in Egypt remain a primary concern and will continue to be so as the political, social and business environment evolves,” said BG chief executive Chris Finlayson in a results statement on July 26.
“While our offshore operations continue unaffected, higher than agreed gas volumes were diverted into the Egyptian domestic market during the quarter, impacting volumes available for LNG export,” he said.
The company has a massive gas project offshore Egypt partnered with Petronas, the West Delta Deep Marine project, but this project is money intensive as the Egyptian reservoirs are suffering a decline offshore.
Not only is the government diverting BG’s gas volumes over and above the agreed to amount, but it owes BG about $1.3 billion from domestic gas sales. With the political uncertainty and the recent regime change it is likely that Egypt will fall even further into arrears with not only BG but with other international operators as well. In early-July the company reduced its expatriate staff inside Egypt from around 150 to 55, although projects continue to operate normally, the company said. Future investments in the country remain less certain.
“Given the current situation in Egypt, the group’s investment program is under continuous review,” the company said in its statement.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
