CAIRO, Aug 28 – Gas producer Energean is in exclusive negotiations to acquire a portfolio of BP’s upstream oil and gas assets in Egypt in a transaction that could generate around $1 billion for the British energy major, Reuters reported on Thursday, citing two people familiar with the process.
The proposed deal would include BP’s interests in the producing offshore West Nile Delta developments, which it owns alongside Harbour Energy, as well as BP’s 50% contractor working interest in the Temsah concession in the eastern Mediterranean, the sources said.
The potential transaction comes as BP continues to reshape its global portfolio, focusing on reducing debt and costs while simplifying its asset base. As part of that strategy, the company is expected to retain its Egyptian interests held through the Arcius joint venture with UAE-based XRG, including its stake in the giant Zohr gas field.
The Temsah assets have gained additional significance following a major gas discovery announced by Eni earlier this year. Eni, which co-owns the concession, said drilling at the Denise West well identified an estimated 2 trillion cubic feet of gas. The partners and the Egyptian government are expected to work toward a final investment decision on the discovery in the coming months.
For Energean, acquiring an interest in Temsah would provide exposure to both existing production and potential future gas development in Egypt.
The company has been seeking to diversify geographically beyond its flagship offshore gas operations in Israel. Those fields have experienced repeated shutdowns amid regional conflict, increasing the importance of expanding into other markets. Energean has previously identified Egypt and West Africa as areas where it wants to expand its upstream portfolio.
BP has maintained a major presence in Egypt for more than six decades and has invested over $35 billion in the country during that period. However, its Egyptian gas production has declined considerably in recent years. BP produced approximately 518 million cubic feet per day of natural gas in Egypt last year, around 40% below its 2024 output and nearly 60% below 2023 levels.
The possible sale reflects BP’s broader effort to streamline its portfolio and improve its financial position while retaining exposure to strategically important assets.
Neither Energean nor BP commented on the potential transaction. The sale process has attracted interest from several potential buyers. Reuters previously reported in July that Dragon Oil, Carlyle Group, Energean and Artemis Energy were among the companies expected to bid for interests in BP’s West Nile Delta gas developments, according to three sources familiar with the process.
