BP laying groundwork offshore Egypt

Danish engineering company Subsea 7 said it was awarded a contract to help BP develop three gas fields, including laying export lines, off the coast of Egypt.

For an undisclosed sum, Subsea 7 landed contracts to assist with development of the Giza, Fayoum and Raven fields off the coast of Egypt. The terms of the contract include engineering support from 12 wells in the offshore sector, which includes export lines feeding a nearby port terminal.

BP's Egyptian subsidiary last year took greater control over regional acreage through a deal with Germany energy company DEA Deutsche Erdoel. The acquisition gave BP an 82.75 percent stake in concessions in the West Nile Delta.

BP said it will spend at least six years on exploration and production in the area. The company at one time produced almost 40 percent of the oil in Egypt through its regional partnerships and nearly 30 percent of total natural gas production.

The West Nile Delta project involves the development of 5 trillion cubic feet of potential reserves. Full-scale production, expected to begin in 2017, is expected to be around 1.2 billion cubic feet of gas per day, which represents about a quarter of the country's total.

The International Monetary Fund has said the discovery of a major deposit of natural gas off the Egyptian coast should help ensure positive economic growth.