Even as oil giant BP has agreed to sell liquefied natural gas to Japan in a contract based for the first time on US domestic gas prices rather than the usual but higher crude oil prices, Reliance Industries and its British partner BP have won big crude oil supply tenders from Egypt for 2013.
Reliance Industries (RIL) won the bulk (18 cargoes) on offer from Egypt’s Ras Gharib terminal, winning around 1.5 million tonne of the heavy crude. BP managed to get 15 cargoes in 2013, amounting to 1.2 million.
Late September, BP announced that it would begin work on a natural gas production project in Egypt’s Mediterranean basin.
BP’s offshore project is expected to add 20 per cent to Egypt’s natural gas production. BP Egypt also announced two new discoveries in Nile delta in August this year.
In the case of its Japan contract, the price of the BP gas will be sourced from its production in Egypt and the Caribbean region. The company has decided to invest $10 billion in Egypt over the coming five years.
In India, RIL and BP are to invest an estimated $7.2 billion. The Cabinet Committee on Economic Affairs allowed the British firm to acquire 30 per cent participating interest in 21 oil and gas blocks of RIL, including the premium KG-D6 gas fields.
The duo have begun drilling on a satellite discovery surrounding the gas fields in the KG-D6 block.