Energean in exclusive talks to buy BP oil and gas assets in Egypt - Reuters

Energean is engaged in exclusive discussions to acquire a significant package of BP's Egyptian oil and gas assets, a deal that could net the British energy giant approximately $1 billion, according to a Reuters report on Thursday. The potential transaction encompasses BP's shares in the fruitful West Nile Delta gas assets, jointly owned with Harbour Energy, as well as its 50% working interest in the Temsah concession in the eastern Mediterranean.

Both BP and Energean have not provided any comment on the matter. These talks come on the heels of earlier reports from May, when BP was contemplating the sale of some of its Egyptian gas assets as part of a broader strategy to trim costs, reduce debt, and focus on its most promising oil and gas projects. The Temsah field has garnered renewed value following the discovery of the Denise West reservoir earlier this year, which is estimated to hold around 2 trillion cubic feet of gas and 130 million barrels of condensate in place.

Eni, along with BP and Egypt's General Petroleum Corporation, are aiming to reach a final investment decision in the coming months, with production expected to commence within two years. Despite retaining its Egyptian assets through its joint venture with Abu Dhabi's XRG, including its stake in the massive Zohr gas field, BP has seen its gas production in Egypt plummet to 518 million cubic feet per day last year, a decline of approximately 40% from 2024 and nearly 60% from 2023, as per Reuters data.

For Energean, this acquisition would broaden its footprint in Egypt while reducing its reliance on its core Israeli gas operations, which have experienced numerous shutdowns amid regional conflicts. The company has been actively seeking expansion opportunities in both Egypt and West Africa. In July, Reuters revealed that Energean was in competition with Dragon Oil, the Carlyle Group, and Artemis Energy for BP's West Nile Delta assets.

Securing these exclusive negotiations would place Energean ahead of its competitors, although no definitive agreement has been finalized yet.