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Energean in exclusive talks to buy BP’s Egyptian gas assets
The potential deal would be part of BP’s wider Egyptian divestment process tied to cost cutting, debt reduction, and a move to focus on its core projects.
Energean is in exclusive talks to buy a package of BP’s Egyptian oil and gas assets in a deal that could raise about $1 billion for the British energy major, Reuters reports, citing two people involved in the negotiations.
The proposed transaction would cover BP’s interests in producing West Nile Delta gas assets it holds with Harbour Energy, along with BP’s 50% contractor working interest in the Temsah concession in the eastern Mediterranean. BP and Energean declined to comment.
The talks build on a sale process reported in May, when BP was considering divesting some Egyptian gas assets as part of efforts to cut costs, reduce debt, and concentrate spending on its strongest oil and gas projects.
Temsah has gained value after the Denise West discovery earlier this year, which Eni estimates includes around 2 trillion cubic feet of gas and 130 million barrels of condensate in place. Eni, BP, and the Egyptian General Petroleum Corporation are targeting a final investment decision within the next few months, with first production possible in less than two years, while BP would retain its Egyptian assets held through Arcius Energy, its joint venture with Abu Dhabi’s XRG, including its interest in the Zohr gas field.