BP is planning to spend more than a billion dollars on its assets in Egypt in the coming year. According to Bob Dudley, BP chief executive, the company will spend $1.8 billion in Egypt and an additional $1 billion annually in Abu Dhabi on new discoveries and licensing rounds as it looks to expand its operations in the Middle East.
“We’ve spent in the last two years $6.8 billion in Egypt and it will be about $1.8 billion dollars next year, Khazzan, is way out there and in Oman and the Adco concession each year as well is well over a $1 billion of capital expenditure each year for Abu Dhabi, so it’s a really important part of BP’s world,” Dudley told The National.
BP has a solid and long-standing presence in Egypt where it has produced a cumulative 40 percent of total crude oil output. To date, BP accounts for a tenth of Egypt’s oil production and more than half of its gas production. Recently, the company tried to sell US$500 million worth of its assets in the North African country to SDX Energy, but the talks fell through.
Source: Oil Price