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West Delta Deep Marine Phase 8a Enters Operations

19 October 2011

BG Egypt announced the start of gas production this month from the Phase 8a Deepwater Development Project. The Project is within the West Delta Deep Marine Concession located approximately 90 kilometres offshore the Nile Delta.

The Project represents yet another successful milestone in the phased development of the Concession.

Phase 8a was sanctioned in April 2010. Commenting on the project, BG Egypt President Arshad Sufi said: "Phase 8a has been delivered under budget and ahead of schedule. This latest phase of development of the West Delta Deep Marine Concession reflects the company's commitment to continued investment in Egypt's energy sector."

Managed by the Joint Operating Company (JOC) Burullus Gas Company S.A.E. (EGPC 50%,
BG Group 25%, PETRONAS 25%), Phase 8a is an extension of the existing deepwater subsea infrastructure and comprises nine subsea wells.

Petrojet, an affiliate of the Egyptian General Petroleum Corporation, fabricated all of the subsea structures in their Maadia yard, making this the largest subsea construction project completed by the Maadia facility. The project generated 1.2 million man hours of local employment and during peak construction activity, employed up to 500 people per day on site.

Drilling and completion operations were undertaken by two semi-submersible deepwater rigs, the Saipem operated Scarabeo 6, and, the Diamond operated Ocean Endeavour. Technip was awarded the main subsea EPIC contract that included detailed engineering design, procurement, fabrication and installation. The majority of the subsea controls systems were supplied by Vetco Gray, with Aker Solutions providing controls systems for one well. Cameron supplied the 9 subsea trees and subsea deepwater connector system components.

Since project sanction, the safety record of the project has been exemplary, with 2.4 million man hours achieved without a Lost Time Incident.