BP signs new deal to develop deep water gas find in Egypt

London–BP PLC (BP) said Monday it has signed a new agreement in Egypt to develop significant gas resources in two deep water blocks–a badly needed vote of confidence in the UK company whose reputation has been damaged by the deep water oil spill in the Gulf of Mexico.

“Production from the West Nile Delta development is projected to reach up to 1 billion cubic feet per day, providing a major new source of gas for the domestic market in Egypt,” said BP in a statement.

BP will use subsea infrastructure and a new purpose-built onshore gas plant on Egypt’s Mediterranean coast to develop the fields, BP said.

First gas is expected in late 2014.

“BP and the Egyptian General Petroleum Corporation have a long-standing and successful partnership, and the agreement we signed today takes that to a new level in developing these deep-water resources, as well as creating an important source of future growth for BP,” said BP Chief Executive Tony Hayward.

The oil and gas exploration arm of German utility RWE AG (RWE.XE) has a minority share in the development.

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