Energean is in exclusive talks to buy a package of BP’s Egyptian oil and gas assets in a deal that could raise about $1 billion for the British energy major, Reuters reported Thursday exclusively, citing two people involved in the negotiations.
The proposed deal includes BP’s interests in the producing West Nile Delta gas assets, which it owns with Harbour Energy, as well as its 50% contractor working interest in the Temsah concession in the eastern Mediterranean. BP and Energean declined to comment.
The talks advance a sale process reported in May, when BP was considering divesting some of its Egyptian gas assets as part of a wider effort to cut costs, reduce debt and concentrate spending on its strongest oil and gas projects.
Temsah has become considerably more valuable following the Denise West discovery earlier this year. Eni estimates the discovery contains around 2 trillion cubic feet of gas and 130 million barrels of condensate in place, with the field less than 10 kilometers from existing infrastructure. Eni, BP and Egyptian General Petroleum Corporation are targeting a final investment decision within the next few months, with first production possible in less than two years.
BP would retain its Egyptian assets held through Arcius Energy, its joint venture with Abu Dhabi’s XRG, including its interest in the giant Zohr gas field. BP has invested more than $35 billion in Egypt over six decades, but its Egyptian gas production fell to 518 million cubic feet per day last year, down about 40% from 2024 and nearly 60% from 2023, according to Reuters.
For Energean, the acquisition would expand its Egyptian portfolio while reducing its dependence on its flagship Israeli gas operations, which have faced repeated shutdowns during regional conflicts. The company has been seeking expansion opportunities in both Egypt and West Africa.
Reuters reported in July that Energean was competing with Dragon Oil, Carlyle Group and Artemis Energy for BP’s West Nile Delta assets. Exclusive negotiations would put Energean ahead of those bidders, although no final agreement has been announced.
By Tom Kool for Oilprice.com
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