Terms of the contract with BP and Germany's RWE AG and the Egyptian government were recently changed, specifically two production contracts for natural gas. Essentially it ends the requirement for the Egyptian government to invest in developement related to their offshore fields.
RWE Dea Chief Executive Officer Thomas Rappuhn said in an interview, “We used to have a production sharing agreement that said the state should invest. This has been changed. We pay royalties for what we have invested and produced.”
The new terms of the deal reportedly obligates BP and/or others in the future, to start production by a specific date and produce a predetermined amount.
Projects included in this particular contract are the North Alexandria and West Mediterranean Deepwater concession. In the former BP owns a 60 percent stake, while in the latter they own an 80 percent stake. RWE owns the remainder in both projects.
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