Energean in exclusive talks to buy BP Egypt oil and gas assets, sources say

• The acquisition includes BP's offshore West Nile Delta assets (co-owned with Harbour) and 50% working interest in the Temsah concession, where partner Eni recently discovered gas reserves
• BP's Egyptian natural gas production dropped to 518 million cubic feet per day in the most recent year, down 40% from 2024, as part of broader portfolio simplification efforts
• Energean seeks expansion beyond its Israeli gas fields, which have faced repeated shutdowns due to regional conflict, targeting opportunities in Egypt and West Africa

Summary

Gas producer Energean is in exclusive negotiations to acquire BP's upstream oil and gas assets in Egypt in a deal valued at approximately $1 billion, according to sources familiar with the matter.

Assets Included:

• Stakes in the offshore West Nile Delta production assets (jointly owned with Harbour)
• 50% contractor working interest in the Temsah concession in the eastern Mediterranean

The Temsah asset includes a recent discovery by co-owner Eni at the Denise West well, with development plans expected in the coming months.

BP's Egypt Position:

BP has invested over $35 billion in Egypt across six decades, but production has declined sharply. Natural gas output fell to 518 million cubic feet per day in 2023—down 40% from 2024 and nearly 60% from 2023. BP will retain Egyptian assets held through its Arcius joint venture with UAE-based XRG, including the substantial Zohr gas field.

Strategic Context:

The divestment aligns with BP's broader portfolio simplification strategy aimed at reducing debt and costs. For Energean, the acquisition supports expansion beyond its offshore Israel gas fields, which have faced repeated shutdowns due to regional conflict. The company has publicly stated interest in growing operations in Egypt and West Africa.

Other parties previously reported as potential bidders included Dragon Oil, Carlyle Group, and Artemis Energy. Both BP and Energean declined to comment on the exclusive negotiations.

The transaction represents a significant consolidation in Egypt's upstream sector and could strengthen Energean's regional presence while allowing BP to streamline operations.