BP Weighs Partial Exit From Egypt’s Gas Portfolio Amid Portfolio Reset

BP is considering the partial sale of its gas assets in Egypt as part of a wider portfolio optimisation strategy, according to sources cited by Reuters on 15 May. No final decision has been taken, and the company has not disclosed which assets may be involved, nor potential buyers or valuations.
The review forms part of a strategic reset under chief executive Meg O’Neill, who took over leadership of BP in February 2026. The company is prioritising higher-return upstream projects while working to reduce net debt and strengthen its balance sheet. BP’s net debt stood at $22.9 billion at the end of 2024, up 9.6% year-on-year.

Egypt remains one of BP’s most significant long-standing upstream hubs, with more than six decades of operations and cumulative investment exceeding $35 billion. The company was still Egypt’s largest gas producer in 2024, accounting for around 60% of national output, according to Agence Ecofin.

Its portfolio includes joint ventures with Petrobel and the Pharaonic Petroleum Company in the Nile Delta, alongside wholly owned assets in the western Nile Delta. BP also operates five offshore fields across the North Alexandria and West Mediterranean Deepwater concessions.
However, production has declined sharply. BP’s 2025 annual report showed output falling to about 518 million cubic feet per day, a 40% drop year-on-year and nearly 60% lower than 2023 levels, reflecting maturing reservoirs and natural field depletion.

Despite potential divestment activity, BP continues to pursue exploration in Egypt. In April, the company announced a significant gas and condensate discovery in the Temsah concession following drilling of the Denise W-1 well in the eastern Mediterranean.
The discovery is located less than 10 kilometres from existing infrastructure, improving the likelihood of fast-track development. Industry data compiled by OilPrice indicates this was one of several discoveries BP reported in 2025, underscoring ongoing geological interest in the region.

Egypt has shifted from a net gas exporter to an importer since 2023, according to the International Energy Agency, driven by declining output from mature fields and rising domestic demand.
To address the shortfall, the government plans to drill more than 100 exploration wells in 2026 with international partners. BP is contributing through Arcius Energy, a joint venture formed in 2024 with XRG, ADNOC’s international investment arm.

In April, Arcius Energy approved a $500 million investment decision to develop the Harmattan gas field in the El Burg Offshore concession, announced at EGYPES 2026. The project includes three wells, an offshore platform, and a 50-kilometre pipeline to Port Said, with first gas expected in 2028 at around 125 million cubic feet per day.