Gas producer Energean (ENOG.L), opens new tab is in exclusive talks to buy some of BP’s (BP.L), opens new tab upstream oil and gas assets in Egypt, two people involved in the process told Reuters.
The deal, which could raise about $1 billion for BP, includes its stakes in the producing offshore West Nile Delta assets, owned jointly with Harbour (HBR.L), opens new tab, and its 50% contractor working interest in the Temsah concession in the eastern Mediterranean, the sources said.
Temsah co-owner Eni (ENI.MI), opens new tab this year announced a discovery of an estimated 2 trillion cubic feet of gas after drilling the Denise West well. The firms and the Egyptian state are working on a final investment decision for that discovery in the next few months, Eni said this week.
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, down about 40% from 2024 and nearly 60% from 2023.
As part of a broader effort to simplify its portfolio and reduce debt and costs, BP would retain its Egyptian assets held through the Arcius joint venture with UAE-based XRG, including the giant Zohr gas field, the sources said.
Energean has said it wants to expand beyond its flagship gas fields offshore Israel, which have had to be shut down repeatedly due to conflict in the region, into West Africa and Egypt.
Both Energean and BP declined to comment.
Reuters reported in July that Dragon Oil, Carlyle Group (CG.O), opens new tab, Energean and Artemis Energy were among the groups expected to bid for assets in BP’s West Nile Delta natural gas development off Egypt, three sources familiar with the sale process said at the time.
Source:reuters.com