BP signs deal to develop Jordan's Risha gas field

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BP Plc agreed on Sunday with Jordan to invest at least $237 million to explore for natural gas reserves in the small Risha field near the border with Iraq, company and government officials said.

The sources said under the deal the British company enters into partnership with the government owned National Petroleum Company (NPC) in two phases to boost the field that currently produces around 20 million cubic feet per day.

The oil major was given up to four years to spend at least $237 million on exploration and evaluation of the Risha block, which covers an area of 7,000 square km, officials added.

If the exploration leads to the discovery of large commercially viable reserves of natural gas, officials said BP would enter a second phase to invest billions of dollars in the field.

The government strategy calls for Risha to produce 330 million cubic feet per day by 2015 with the field at least doubling its production in the first few days.

Risha, which was discovered in 1987, has not delivered encouraging exploration results in the past but Jordanian officials are hopeful intensive drilling could reveal extensive recoverable gas reserves.

Minister of Energy and Mineral Resources Khaldoun Qutaishat told reporters after the signing his country was optimistic future discoveries from Risha field would help cut dependence on oil imports to fuel Jordan's power sector and industries.

The kingdom, which imports most of its energy, is struggling to meet electricity demand, which is growing by more than 7 percent per year, due to fast growing population and rising industrial needs. (Reuters)

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