Exclusive Talks
Egypt has reportedly signalled that it will not approve BP’s proposed sale of certain Egyptian oil and gas assets to Energean, casting doubt over a potential transaction valued at around $1 billion.
According to Egyptian independent outlet Mada Masr, officials raised national security concerns linked to Energean’s ties to Israel, as well as questions about the company’s technical capacity to develop assets requiring deepwater drilling.
The message was reportedly conveyed during a meeting in Cairo between Petroleum Minister Karim Badawi and BP executive Gordon Birrell.
BP and Energean are in exclusive talks over interests including BP’s stake in the offshore West Nile Delta development and its 50% contractor interest in the Temsah concession. Any transfer would require approval from the Egyptian government.
However, neither BP nor the Egyptian government has publicly confirmed that the proposed sale has been formally rejected, and no final transaction has yet been announced.
BP would retain its Egyptian interests held through Arcius, its joint venture with the UAE’s XRG, including an interest in the giant Zohr gas field.
The potential transaction comes as Egypt seeks additional investment to reverse declining domestic gas production and reduce its reliance on energy imports. Egyptian lawmakers have also raised concerns about whether a new owner would have sufficient financial and technical capacity to meet drilling and development commitments.
BP, which has operated in Egypt for more than six decades, is meanwhile continuing a four-well drilling programme supported by approximately $700 million of investment.
The Egyptian Petroleum Ministry has stressed that planned development work across BP’s concessions should continue.
