British energy giant
) unit - BP Egypt - has hit upon a huge gas deposit in the East
Nile Delta after drilling the deepest well ever spud in the
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The deepwater exploration probe, Salamat, represents the first
well in the North Damietta Offshore concession that was granted
in Feb 2010. Drilled by the sixth generation semi-submersible rig
- Maersk Discoverer - in water depth of 649 meters, the well,
touched a total depth of about 7,000 meters.
Per the company, the wireline logs, fluid samples and pressure
data established the availability of gas and condensate in 38
meter net of Oligocene sands in Salamat. For the purpose of
delineating the field resources and evaluation of alternatives
for the development of the discovery, further appraisal is
The success of Salamat confirmed the presence of hydrocarbons in
the centre of a 50-kilometer long structure. Moreover, the
discovery with a hydrocarbon column of over 180 meters makes the
company confident of the viability of the deep Oligocene play in
the East Nile Delta.
Located about 75 kilometers north of Damietta city and merely 35
kilometers to the North West of the Temsah offshore facilities,
the Salamat discovery, is operated by BP with equity of 100%.
Currently, BP is assessing the standalone and tie-back to the
nearby Temsah infrastructure development.
BP has been operating in Egypt for the last five decades and has
made investments of over $20 billion. It is the largest foreign
investor in the region having produced 40% of Egypt's total oil
in partnership with Gulf Suez Petroleum Company and BP's joint
venture company with the Egyptian General Petroleum Company. BP's
current yield is about 15% of Egypt's annual oil production.
BP carries a Zacks Rank #3 (Hold). However, Zacks Ranked #1
(Strong Buy) stocks -
Range Resources Corp.
Whiting Petroleum Corp.
) - appear attractive for the short term.