'Project has potential to meet Egypt’s growing gas demand and save the country billions of dollars'
Baker Hughes wins major deal for Egypt's Zohr gasfield
The US oilfield services company Baker Hughes has won a major subsea contract from Petrobel for phase two of the “supergiant” Zohr gasfield in the Mediterranean Sea, off the Egyptian coast.
"This project has the potential to meet Egypt’s growing gas demand and save the country billions of dollars that would otherwise be spent on importing gas," said Lorenzo Simonelli, the president and chief executive of the American company.
Baker Hughes, a GE company and known as BHGE - one of the world's largest oilfield services companies - said as a long-term partner to Egypt, it will provide project management, engineering procurement, fabrication, construction, testing and transportation of a subsea production system. Financial details were not disclosed.
The Egyptian minister of petroleum and mineral resources, Eng Tarek El-Molla, said: “Maximising domestic energy resources and optimising reliability of their supplies are core elements of Egypt’s vision. We are able to increase the value and efficiency of the sector by driving a sustainable and energy-efficient economy through the ministry’s modernisation programme in partnership with companies such as BHGE. The Zohr gasfield is playing a major role in the development of Egypt’s domestic energy resources, revenue generation and economic growth.”
Petrobel is a joint venture between IEOC (an Eni subsidiary in Egypt) and Egyptian General Petroleum Corporation (EGPC) and is in charge of the development of Zohr Field on behalf of PetroSherouk, a joint venture between Egyptian Natural Gas Holding Company (EGAS) and IEOC.
“The Zohr field is one of the most significant developments of its kind, and through this project we can show the efficiency gains that such complex projects can achieve through our enhanced portfolio," said Mr Simonell. "Together with our partners, BHGE can support Egypt’s needs and vision for the energy sector and demonstrate its leadership in the subsea space.”
In addition, BHGE will provide wellheads via a separate contract awarded by Petrobel earlier this year.
Eng Atef Hassan, the chairman and managing director of Petrobel, said: “Partnering with BHGE on this project demonstrates the growing need for long-term service and equipment providers that complement our efforts in driving optimised production.
"The Zohr field will contribute to the development and sustainability of Egypt’s resources, and BHGE’s investment and expertise across oilfield services and equipment will help us drive further efficiencies along the way.”