Global energy giant BP is reportedly considering the sale of part of its natural gas assets in Egypt as the company moves to reduce debt and refocus investments on more profitable operations under its new leadership.
Sources familiar with the matter told Reuters that the oil major is reviewing aspects of its Egyptian gas portfolio as part of a broader corporate restructuring strategy being implemented by Chief Executive Officer Meg O’Neill. However, the sources stressed that discussions remain at an early stage and no final decision has been taken on any potential sale.
BP has maintained a strong presence in Egypt’s energy sector for more than six decades and is regarded as one of the country’s largest foreign investors in oil and gas production.
The company has invested over 35 billion dollars in the North African nation and currently accounts for nearly 60 per cent of Egypt’s natural gas output through several joint ventures and offshore projects.
The company’s operations are concentrated mainly in the East Nile Delta and the West Nile Delta, including the major West Nile Delta development project located in the Mediterranean Sea. The project comprises five offshore gas fields across the North Alexandria and West Mediterranean Deepwater blocks and has played a major role in boosting Egypt’s domestic gas supply.
Despite its long-standing investment in the country, BP’s gas production in Egypt has declined significantly in recent years. Company data shows that production dropped to about 518 million cubic feet per day last year, representing a decline of roughly 40 per cent from 2024 levels and nearly 60 per cent compared to 2023 output.
Industry analysts say the production decline, coupled with rising operational costs and shifting global energy priorities, may be influencing the company’s decision to review parts of its Egyptian asset base.
The possible divestment also comes as international oil companies continue to reassess their portfolios amid volatile energy markets, growing pressure from investors, and the global transition toward cleaner energy sources.
Although BP declined to comment directly on the report, a company spokesperson stated that the firm does not respond to market speculation.
Despite the reported review, BP has continued to expand exploration activities in Egypt. In April, the company announced a new gas and condensate discovery offshore Egypt, reinforcing confidence in the country’s untapped energy potential.
Earlier this year, Egyptian authorities also awarded BP new offshore exploration concessions in the North-East El Alamein and West El Hammad areas, signalling continued cooperation between the company and the Egyptian government.
Energy experts believe any sale of BP assets in Egypt could attract strong interest from regional and international investors seeking to expand their presence in the Mediterranean gas market.
Egypt has increasingly positioned itself as a regional energy hub in recent years, leveraging its strategic location, liquefied natural gas infrastructure, and offshore discoveries to strengthen exports and attract foreign investment.
The outcome of BP’s review is expected to be closely monitored by investors, industry stakeholders, and Egyptian authorities due to its potential implications for the country’s energy sector and future gas production capacity.
