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UPSTREAM PRODUCTION<br />
Rosetta Concession<br />
Rosetta started production in 2001 and<br />
supplies Egypt’s domestic network. In 2004,<br />
<strong>BG</strong> <strong>Group</strong> acquired a further 40% interest<br />
in Rosetta.<br />
In first quarter 2008, <strong>BG</strong> <strong>Group</strong> delivered<br />
first gas from the Rosetta Phase III field<br />
development plan which completed in third<br />
quarter 2008. The project consists of five<br />
wells tied back to the first two phases of<br />
Rosetta. The next phase of development<br />
is that of the Sequoia field.<br />
Sequoia<br />
The unitised development (Rosetta<br />
Phase IV/WDDM Phase VI) of the Sequoia<br />
field (<strong>BG</strong> <strong>Group</strong> 62.99%) which lies across<br />
the boundary of the WDDM and Rosetta<br />
Concessions was sanctioned in second<br />
quarter 2008. It consists of six sub-sea wells:<br />
three wells on each of WDDM and Rosetta<br />
which are tied back to existing infrastructure.<br />
First gas came onstream in August 2009, with<br />
production delivered to both the domestic<br />
and export markets.<br />
WDDM Concession<br />
<strong>BG</strong> <strong>Group</strong> and partners have drilled<br />
34 successful exploration and appraisal<br />
wells in WDDM since 1997, discovering<br />
14 gas fields: Scarab, Saffron, Simian, Sienna,<br />
Sapphire, Serpent, Saurus, Sequoia, SimSat-P1<br />
and SimSat-P2. Additional development<br />
leases were granted in 2007 for the Solar,<br />
Sienna-Up, Mina and Silva discoveries.<br />
Scarab Saffron<br />
Scarab Saffron started production in 2003<br />
and supplies gas to the domestic market and<br />
Damietta LNG. <strong>BG</strong> <strong>Group</strong> currently supplies<br />
900 mmscfd under the domestic GSA.<br />
Under an agreement signed with EGAS in<br />
2004, gas has been de-dedicated for five<br />
years from the domestic GSA so that, since<br />
February 2005, some of the gas has been<br />
processed through the Damietta LNG plant<br />
for a tolling fee. In 2009, this amounts to<br />
150 mmscfd. <strong>BG</strong> <strong>Group</strong> through its wholly<br />
owned subsidiary <strong>BG</strong> Gas Marketing (<strong>BG</strong>GM)<br />
and its WDDM partner PETRONAS lift the<br />
corresponding volume (1 mtpa) of LNG.<br />
<strong>BG</strong>GM lifted its first cargo from Damietta<br />
in March 2005.<br />
Scarab Saffron was the first deep water<br />
sub-sea development in Egypt. These<br />
facilities consist of eight sub-sea wells<br />
connected to a sub-sea manifold, in turn<br />
connected by pipelines to an onshore<br />
processing terminal. Electrical and hydraulic<br />
lines connect the wells to the onshore control<br />
room. The fields are located approximately<br />
90 kilometres from the shore and in water<br />
depths of more than 700 metres.<br />
Simian, Sienna and Sapphire<br />
The Simian and Sienna fields produced first<br />
gas in 2005, for supply to Egyptian LNG<br />
Train 1 at Idku. The Sapphire field produced<br />
first gas in 2005, for supply to Egyptian LNG<br />
Train 2. The Simian, Sienna and Sapphire<br />
fields are located in WDDM approximately<br />
120 kilometres offshore Idku, near Alexandria,<br />
in the Mediterranean Sea. The facilities<br />
consist of 16 sub-sea wells tied into the<br />
existing WDDM gas gathering network and<br />
a shallow water control platform. The<br />
onshore processing facilities form part of<br />
the Idku Gas Hub where the Egyptian LNG<br />
facilities are located.<br />
WDDM Phase IV and Phase V<br />
The WDDM fields have undergone a number<br />
of development phases to maximise<br />
hydrocarbon recovery. Phase IV brought<br />
onstream seven additional wells during<br />
2008, bringing the total number of sub-sea<br />
wells in WDDM to 31.<br />
In May 2009, <strong>BG</strong> <strong>Group</strong> started incremental<br />
gas production through WDDM Phase V, a<br />
compression project in this concession. The<br />
project includes installation of two onshore<br />
gas turbine-driven compression sets, new<br />
absorption towers and associated equipment<br />
to extend plateau production from WDDM<br />
reservoirs. The project was designed to boost<br />
the pressure of processed gas into the grid,<br />
allowing field operations at lower pressures.<br />
<strong>BG</strong> <strong>Group</strong> is currently evaluating future<br />
phases of WDDM that will extend the<br />
current production plateau. The <strong>Group</strong><br />
sanctioned Phase VII in 2009.<br />
Concession Field<br />
<strong>BG</strong> <strong>Group</strong><br />
Interest (%) Supplying DCQ gross<br />
Rosetta Rosetta 80% Domestic market 345 mmscfd<br />
WDDM Scarab Saffron 50% Domestic market 750 mmscfd<br />
WDDM1 Scarab Saffron 50% Damietta LNG (Union<br />
Fenosa JV Co SEGAS)<br />
150 mmscfd<br />
WDDM Simian, Sienna, Sapphire, Sequoia 50% Egyptian LNG Train 1 565 mmscfd<br />
WDDM Simian, Sienna, Sapphire, Sequoia 50% Egyptian LNG Train 2 565 mmscfd<br />
1 <strong>BG</strong> <strong>Group</strong> and PETRONAS lift the corresponding volume of LNG.<br />
Partners (%)<br />
Rosetta Concession*<br />
Rashid Petroleum Company<br />
40<br />
WDDM Concession*<br />
Burullus Gas Company<br />
25<br />
El Burg Concession*<br />
<strong>BG</strong> <strong>Group</strong><br />
Edison<br />
EGPC<br />
PETRONAS<br />
* <strong>BG</strong> <strong>Group</strong> operator.<br />
80 20<br />
10 50<br />
50 50<br />
50 25<br />
70 30<br />
In September 2008, the Government<br />
(through EGPC) agreed new pricing terms<br />
for the gas sold into the domestic market.<br />
The price increase is being phased in over<br />
the period 2008-2011.<br />
EXPLORATION<br />
El Manzala Offshore and El Burg<br />
Offshore Concessions<br />
In 2005, <strong>BG</strong> <strong>Group</strong> signed El Burg Offshore<br />
and El Manzala Offshore concession<br />
agreements for the exploration of gas and<br />
oil with the Egyptian Natural Gas Holding<br />
Company (EGAS). Exploration drilling on<br />
El Manzala Offshore and El Burg Offshore<br />
commenced in 2008. <strong>BG</strong> <strong>Group</strong> is currently<br />
planning the forward exploration programme<br />
for these areas for 2010.<br />
North Gamasa Offshore Concession<br />
In April 2009, <strong>BG</strong> <strong>Group</strong> was awarded 100%<br />
of Block 1 (North Gamasa Offshore). The block<br />
covers an area of 281 square kilometres and<br />
is located 20 kilometres from the coast in<br />
shallow water. The initial work programme<br />
will most likely involve the acquisition of 3D<br />
seismic data.<br />
North Sidi Kerir Deep Concession<br />
<strong>BG</strong> <strong>Group</strong> notified EGAS of its intention to<br />
relinquish its interest in the North Sidi Kerir<br />
Deep Concession, effective July 2009.<br />
<strong>BG</strong> <strong>Group</strong> Data Book 2009<br />
13<br />
AFRICA, MIDDLE EAST AND ASIA