Atoll gas field onstream seven months ahead of schedule

BP announced on 12 February the start of gas production from the Atoll Phase One project, offshore Egypt. The project, in the North Damietta concession in the East Nile Delta, was delivered seven months ahead of schedule and 33% below the initial cost estimate. It is producing 350mn cf/d of gas and 10,000 b/d. Gas production from the field is directed to Egypt’s national grid.

Atoll is the first new project to come into production for BP in 2018, adding to the series of higher-margin projects successfully brought online over the past few years. The 13 projects that started up through 2016 and 2017 provided more than 500,000 boe/d of new net production capacity and total net production from BP’s new projects is now expected to be 900,000 boe/d by 2021.

The main reservoir in Atoll contains an estimated 1.5tn cf of gas and 31mn barrels of condensates. Further segments are under evaluation.

The Atoll Phase One project is an early production scheme involving almost $1bn investment. The project involved recompletion of the original exploration well as a producing well and the drilling of two additional production wells, completed August 2015 to February 2017. Production is exported to the existing onshore West Harbor gas processing plant.

With total investments of approximately $30bn, BP is one of the largest foreign investors in Egypt. To date, BP Egypt, in collaboration with the Gulf of Suez Petroleum Company (GUPCO), BP’s joint venture company with the Egyptian General Petroleum Company (EGPC), has produced almost 40% of Egypt’s entire oil production, and currently produces almost 10% of the country’s annual oil and condensate.

BP also currently produces close to 50% of Egypt’s total natural gas consumption through its joint ventures, the Pharaonic Petroleum Company (PhPC) and Petrobel with EGPC/EGAS and partners.

It operates the West Nile Delta project, which involves the development of 5tn cf of gas resources and 55mn barrels of condensates. Production is expected to potentially reach up to 1.3bn cf/d once all development phases are complete – equivalent to about 25% of Egypt’s current gas production – which will supply the country’s national gas grid. The first phase of the project began production in March 2017.

BP has made a series of discoveries in Egypt in recent years, including Taurt North, Seth South, Salmon, Rahamat, Satis, Hodoa, Notus, Salamat and Atoll. In early 2017, BP acquired from Eni a 10% stake in the Shorouk Concession, which contains the giant Zohr gas field that come onstream in December 2017.

Borealis was a key vessel in the development of the Atoll field
Photo: BP