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By Bloomberg

BP Plc has finalized an agreement with Egypt to extract gas in the country within two years after investing about $12 billion.

BP will supply Egypt’s domestic gas market from the West Nile Delta project, which contains about 5 trillion cubic feet of the fuel, London-based BP said in a statement on Friday. It owns 65 percent of the project, which will produce 1.2 billion cubic feet a day, about a quarter of Egypt’s current production, BP said.

“All the produced gas will be fed into the country’s national gas grid, helping to meet the anticipated growth in local demand for energy,” BP said.

BP will produce the gas from two of its offshore concession blocks, North Alexandria and West Mediterranean Deepwater, it said. It sees the potential to add a further 5 trillion to 7 trillion cubic feet of gas through exploration.

“The WND project investment is the largest foreign direct investment in Egypt,” BP Chief Executive Officer Bob Dudley said in the statement. It “demonstrates our continued confidence in Egypt and our commitment to unlock its energy potential. WND production is key to Egypt’s energy security.”

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