BP PLC (ADR) (NYSE:BP), which continues to explore in Egypt despite the political chaos there and across the Mideast, announced on Monday that it has made a major natural gas find in the East Nile Delta.
U.K.-based BP’s deep-water discovery, named Salamat, is the deepest well the company drilled in the Nile Delta. The energy giant is helping Egypt meet its domestic energy needs by actively exploring in the Nile Delta and investing to add production from current discoveries.
The announcement came as violence erupted in the lawless Sinai Peninsula Saturday, with military and government forces launching a large-scale operation against Islamists and militants. Since the Egyptian revolution, Sinai has become a haven for militants, who have bombed gas pipelines headed toward Israel, kidnapped tourists and killed Egyptian security forces. Just last week terrorists tried but failed to disrupt shipping through the Suez Canal by trying to attack a cargo ship.
“The Salamat discovery is a great outcome for our first well in this core exploration program in the East Nile Delta. It shows our commitment to meeting Egypt’s energy needs by exploring the deep potential offshore the Nile Delta,” Hesham Mekawi, BP Egypt’s regional president, said.
According to the Oil and Gas Journal, Egypt’s proven natural gas reserves are the third highest in Africa, after Nigeria and Algeria.