Egypt Reportedly Moves to Block BP-Energean Deal

Egypt has reportedly informed BP that it intends to reject the proposed sale of certain Egyptian oil and gas assets to Energean, adding uncertainty to a transaction that could be worth about $1 billion.

MONTREAL (Oil Monster): Egypt has reportedly informed British energy major BP that it intends to reject the proposed sale of certain Egyptian upstream oil and gas interests to Energean.

The reported decision follows a September 24 meeting in Cairo between Petroleum and Mineral Resources Minister Karim Badawi and senior BP officials, including Executive Vice President for Production and Operations Gordon Birrell.

Security and Technical Concerns Reportedly Raised

According to sources familiar with the discussions, national-security considerations were among the reasons given for opposing the proposed transaction.

The sources also pointed to what they described as a significant difference between BP and Energean's technical capabilities, particularly in deepwater drilling and development.

Egypt's Petroleum Ministry has publicly confirmed the meeting with BP executives but has not announced a formal rejection of the proposed transaction.

Deal Covers West Nile Delta and Temsah Assets

The proposed transaction involves BP interests in producing West Nile Delta assets and its 50% contractor working interest in the Temsah concession in the eastern Mediterranean.

BP operates the West Nile Delta project with an 82.75% interest, while Harbour Energy holds the remaining 17.25%.

Reuters reported in August that Energean had entered exclusive negotiations to acquire the assets in a transaction that could raise approximately $1 billion for BP.

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BP Remains a Major Gas Producer in Egypt

BP has operated in Egypt for more than six decades and has invested more than $35 billion in the country.

Reuters reported that BP produced approximately 518 million cubic feet per day of natural gas in Egypt in 2025. That was about 40% lower than in 2024 and nearly 60% below its 2023 production level.

BP is meanwhile continuing a four-well drilling program in Egypt backed by approximately $700 million of investment.

The first well in that program, Fayoum-4, began production in September and is supplying approximately 80 million cubic feet per day to Egypt's national gas grid.

BP and Energean Have Not Announced a Completed Deal

Although previous reports said BP and Energean had entered exclusive negotiations, neither company has announced that a transaction has been completed.

The reported Egyptian objection introduces another hurdle for the potential asset transfer while BP continues drilling and investment activity in the country.

Egypt Focused on Maintaining Domestic Gas Production

The proposed transaction comes as Egypt works to increase domestic natural gas supply and reduce its dependence on imported gas.

Concerns over whether a prospective buyer has the financial and technical capacity to maintain drilling, development and production have also been raised publicly in Egypt as the BP sale process has advanced.