BP's billion gas venture in Egypt

British major, BP Plc ( BP ) expects to spend a substantial $11 billion in a natural gas project in Egypt's Mediterranean Sea. With this BP strengthens its increasing foothold in the region to meet the future growth of the gas business in Egypt.

BP remains focused on unlocking natural gas reserves from a deepwater deposit in Egypt's Mediterranean basin. The company is now busy digging at a depth of 7,700 meters in the Mediterranean Sea and is unearthing 1 billion square feet of natural gas per day. According to information from the country's State Information Service ("SIS"), this is equivalent to approximately 20% of the North African country's energy production.

The project ? which will likely take four to five years to complete ? will deliver 40% of Egypt's natural gas output. Egypt holds the third largest position in Africa in terms of gas reserves and is entitled to receive the extracted gas for 40% of its prices. BP has already initiated its digging operation on August 18 and expects to begin the exploration campaign next year.