BP in Talks to Sell Egyptian Oil and Gas Assets to Energean, Reuters Reports

BP (LON: BP) is in exclusive talks to sell a package of its upstream oil and gas assets in Egypt to UK-listed gas producer Energean, in a deal that could raise around $1 billion for the British energy major, Reuters reported on Thursday, citing two people involved in the negotiations.

According to Reuters, the proposed transaction includes BP’s stakes in the producing offshore West Nile Delta assets, which it jointly owns with Harbour Energy, as well as its 50% contractor working interest in the Temsah concession in the eastern Mediterranean.

Temsah has grown in strategic importance since co-owner Eni announced an estimated 2 trillion cubic feet gas discovery at the Denise West well earlier this year, with Eni, BP and the Egyptian state working towards a final investment decision on the find within the next few months.

Reuters noted that BP would retain its Egyptian assets held through the Arcius Energy joint venture with UAE-based XRG, including the giant Zohr gas field. BP has invested more than $35 billion in Egypt over six decades, but its Egyptian natural gas output has been sliding, falling to 518 million cubic feet per day last year — down roughly 40% from 2024 and nearly 60% from 2023.

For Energean, the deal would advance its stated ambition to diversify beyond its flagship, conflict-prone Israeli gas fields and expand into Egypt and West Africa. Reuters also reported that Dragon Oil, Carlyle Group and Artemis Energy had previously been floated as potential bidders for parts of BP’s Egyptian portfolio.

Both BP and Energean declined to comment when approached by Reuters. Shares in both companies will be watched closely as the talks progress toward a potential agreement.