Two people with knowledge of the discussions said Energean is negotiating exclusively with BP to acquire a portion of the British company’s upstream oil and gas interests in Egypt.
The proposed transaction is expected to be worth around $1 billion and would cover BP’s participating interests in producing offshore fields in the West Nile Delta, where it works with Harbour Energy.
The deal would also involve BP’s 50% contractor working interest in the Temsah concession, located in Egypt’s eastern Mediterranean waters, according to the sources.
Interest in the Temsah concession has increased following a significant gas discovery announced by its co-owner, Eni. The Italian energy company said drilling at the Denise West well uncovered an estimated 2 trillion cubic feet of gas.
Eni disclosed this week that discussions between the partners and Egyptian authorities are progressing, with a final investment decision on the discovery expected in the coming months.
BP’s presence in Egypt dates back six decades, during which the company has invested more than $35 billion in the country. However, its Egyptian gas output fell to 518 million cubic feet per day last year, down about 40% from 2024 and nearly 60% from 2023.
The talks form part of BP’s efforts to reshape its international portfolio, reduce its debt burden and lower operating costs. The company is expected to retain its other Egyptian holdings under the Arcius joint venture with UAE-based XRG, including its interest in the major Zohr gas field.
For Energean, the potential acquisition would expand its footprint beyond its core operations in Israeli waters. Production from its key offshore fields there has faced repeated interruptions linked to the conflict in the region.
The company has identified Egypt and West Africa as areas of interest as it seeks to broaden its geographical reach and increase its gas production portfolio.
Neither Energean nor BP commented on the reported negotiations.
The development follows a Reuters report in July that Dragon Oil, Carlyle Group, Energean and Artemis Energy were among prospective bidders for BP’s West Nile Delta natural gas interests. Three people familiar with the process had identified the companies as potential participants in the sale.
Goodness Anunobi
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