BP has entered into an agreement with Shell to process 650 Mmcf of gas, produced from the North Alexandria project, at Shell’s Borollos station for $0.3 per million feet.

According to a senior source in the petroleum sector, the process of connecting the North Alexandria project to the station in Borollos is to commence in the coming period.

He added that the Shell’s Borollos gas treatment plant which currently processes 650 Mmcfpd, has an estimated capacity of approximately 1.1 Bcfpd.

The North Alexandria project consists of the development of five fields. The company intends to start with the Taurus and Libra fields by connecting them to the onshore processing facilities in Borollos in Q3 of 2017, as it has completed 52% of operations on both fields.

North Alexandria’s fields’ estimated reserves stand at about 5 Tcf of gas and 55m barrels of condensates.

The Egyptian Ministry of Petroleum’s initial plan included the connection of the full production of BP’s North Alexandria project, which is expected to reach 1.25 Bcfpd and 17,000 barrels of condensate, in Q3 of 2019. This would signify $11bn in investments.

This plan also requires the company to fast-track the commencement of production from the North Alexandria project during Q3 of 2017.

BP procured the Rosetta gas treatment plant in Rashid for $128m from Shell and is currently preparing it for linkage to receive production from the Giza and Fayoum fields as well as North Alexandria.

Rosetta has a capacity of 425 Mmcfpd. Approximately 420m feet of gas from the Giza and Fayoum fields will be connected to the station by 2019.

Giza and Fayoum will also be connected by means of the onshore processing facilities in Rashid, following the addition of new equipment to match the type of gas produced from these fields in Q3 of 2019.

The senior source explained that Shell has relocated Rosetta field’s production in the Rashid concession area to Borollos station, after it sold Rosetta to BP, Daily News Egypt reports.

Anita Fatunji