LONDON, May 19 (Reuters) - BP has increased its share in the$12 billion West Nile Delta gas field in Egypt to above 80percent after buying a stake from DEA, the energy group owned byRussian billionaire Mikhial Fridman.
Germany-based DEA said it had sold roughly half of its stakein the field and now owns 17.25 percent of the concession dealto develop 5 trillion cubic feet of gas resources and 55 millionbarrels of condensates.
Fridman appointed in March former BP boss John Browne tohead DEA.
The West Nile Delta field is planned to start production in2017 and to produce 1.2 billion cubic feet per day, around onequarter of Egypt's current gas production.
DEA, which Fridman's LetterOne fund bought from Germanutility firm RWE earlier this year for $5.1 billion,also holds a minority stake in Egypt's North Alexandria and WestMediterranean Deepwater concessions together with BP.
"The farm down was also used by DEA to work closely withpartner BP to restructure the partnerships agreements tomaximise the speed of decision making," DEA said in a statement.
While the increased stake in the field offers BP a strongreturn of around 15 percent and important resources, the riskassociated with Egypt remains high, Deutsche Bank said in anote.
"DEA's decision to sell down, whilst described as reflectinga desire to diversify risk, may however raise questions on thestrength of the absolute economics associated with the Egyptianproject whilst also clearly emphasising the political riskassociated with developments in the region." (Reporting by Ron Bousso; Editing by Ruth Pitchford)