Energean Negotiates to Acquire BP Assets in Egypt

Two informed sources said that Energean Gas Production is in exclusive talks to buy some of BP’s assets in Egypt’s oil and gas exploration and production sector.

The two sources told Reuters that the deal, which could generate around $1 billion for BP, includes its stakes in producing offshore West Nile Delta assets, held jointly with Harbor, and its 50 percent stake in the Tamar concession in the eastern Mediterranean.

Eni, a co-owner of the Tamar field, announced this year the discovery of approximately one trillion cubic feet of gas after drilling the Dennis West well. Eni said this week that the two companies and the Egyptian government are working to make a final investment decision on the discovery in the coming months. BP, which has invested more than $35 billion in Egypt over six decades, produced 518 million cubic feet per day of natural gas in the country last year, a decline of nearly 40 percent from 2024 and about 60 percent from 2023.

The two sources said BP would retain its Egyptian assets, held through the Arqius joint venture with UAE-based XRG, as part of broader efforts to simplify its asset portfolio and reduce debt and costs. These include the giant Zohr field. Energean said it is seeking to expand beyond its main gas fields off the coast of Israel, which have repeatedly been forced to halt operations due to regional conflict, into other markets including West Africa and Egypt.

Reuters reported in July, citing three informed sources at the time, that Dragon Oil, Carlyle Group, Energean, and Artemis Energy were among the groups expected to submit bids to buy assets in BP’s natural gas development project in the West Nile Delta off Egypt’s coast.