Egypt: BP Awarded New Offshore Exploration Block in Western Mediterranean

A map showing the concession area Egypt granted to BP to explore for gas in the western Mediterranean. (Asharq Al-Awsat)
A map showing the concession area Egypt granted to BP to explore for gas in the western Mediterranean. (Asharq Al-Awsat)
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Egypt: BP Awarded New Offshore Exploration Block in Western Mediterranean

A map showing the concession area Egypt granted to BP to explore for gas in the western Mediterranean. (Asharq Al-Awsat)
A map showing the concession area Egypt granted to BP to explore for gas in the western Mediterranean. (Asharq Al-Awsat)

BP has won gas exploring rights in Egypt's offshore King Mariout concession in the western Mediterranean, the British-based company said in a statement on Tuesday.

This comes following its successful participation in 2021’s limited bid round organized by the Egyptian Natural Gas Holding Company.

The concession area is located approximately 20 kilometers west of the Raven field in the Mediterranean Sea within western Nile Delta area. It offers potential for material gas discoveries that could be developed using existing infrastructure.

The area covers around 2,600 square km at a depth of between 500 and 2,000 meters.

BP owns 100% of the exploration rights area there, which enhances the chances of developing future gas discoveries by utilizing the existing infrastructure, the statement added.

It quoted BP’s North Africa Regional President Karim Alaa as saying that the new award, following EGY-MED-E5 block award in early 2022 to an equally owned partnership between BP and Eni, will leverage existing infrastructure to continue delivering hydrocarbons for Egypt’s growing gas market.

BP has been active player in the Egyptian energy industry since 60 years investing more than $35 billion.



Oil Retreats on US Tariff Uncertainty and OPEC+ Supplies

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Retreats on US Tariff Uncertainty and OPEC+ Supplies

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices slipped on Thursday as the possibility of US tariffs being reinstated raised demand concerns ahead of an expected supply boost by major producers.

Brent crude futures fell 58 cents, or 0.8%, to $68.53 a barrel by 0942 GMT. US West Texas Intermediate crude declined 57 cents, or 0.9%, to $66.88.

Both contracts had hit one-week highs on Wednesday as Iran suspended cooperation with the UN nuclear watchdog, raising concerns the lingering dispute over its nuclear program could again devolve into armed conflict.

A preliminary trade deal between the US and Vietnam also boosted prices.

Tariff uncertainty looms large, however. The 90-day pause on the implementation of higher US tariffs ends on July 9, with several large trading partners yet to wrap up trade deals, including the European Union and Japan.

The OPEC+ group of oil producers, meanwhile, is expected to agree to raise output by 411,000 barrels per day (bpd) at its policy meeting this weekend. Adding to negative sentiment, a private-sector survey showed that service activity in China - the world's biggest oil importer - expanded at its slowest pace in nine months in June as demand weakened and new export orders declined. A surprise build in US crude inventories also highlighted demand concerns in the world's biggest crude consumer.

The US Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels.

The market will be watching for the US monthly employment report on Thursday, which is likely to shape expectations over the depth and timing of interest rate cuts by the Federal Reserve in the second half of the year, analysts said.

Lower interest rates could spur economic activity that would boost oil demand.