British energy giant BP is reportedly evaluating a partial withdrawal from its natural gas operations in Egypt as part of a wider restructuring strategy focused on lowering debt levels and concentrating on assets with stronger returns, according to sources familiar with the matter.
Reuters reported that BP is exploring the possibility of divesting portions of its Egyptian gas portfolio as new Chief Executive Officer Meg O’Neill pushes ahead with plans to streamline the company and prioritise more profitable investments.
If implemented, the decision would signal a major change in one of BP’s longest-standing energy relationships in Africa and the Middle East, where the company has invested more than $35 billion over the past six decades.
BP currently occupies a significant position in Egypt’s gas industry, contributing roughly 60 per cent of the country’s total gas production through joint ventures in the East Nile Delta as well as company-operated fields in the West Nile Delta.
The portfolio includes major projects within the North Alexandria and West Mediterranean Deepwater offshore concessions.
Last year, BP’s gas production in Egypt stood at approximately 518 million cubic feet per day, representing a decline of around 40 per cent compared to 2024 levels and nearly 60 per cent lower than output recorded in 2023, highlighting ongoing fluctuations in production from ageing fields.
Egypt eyes gap-filling strategy as output pressure builds
Egypt is pursuing several measures aimed at minimising potential supply disruptions should BP scale back its involvement in the country’s natural gas sector.
Authorities have sought to rebuild investor confidence by settling billions of dollars in outstanding payments owed to international oil firms while simultaneously offering additional offshore exploration blocks to attract new foreign investment.
Meanwhile, Egypt has increased its dependence on liquefied natural gas imports to satisfy growing domestic consumption and compensate for falling production from mature gas fields.
The country is also reinforcing regional energy cooperation with Cyprus and Israel to secure extra gas supplies through Eastern Mediterranean partnership agreements.
Despite reports surrounding a potential sale of some Egyptian assets, BP has continued to expand exploration activities in the country and recently announced fresh offshore discoveries along with planned investments estimated at about $1.5 billion for the 2026/27 financial year.
Egypt’s broader energy strategy therefore centres on a mix of foreign investment, continued exploration, regional gas collaboration and LNG imports to strengthen energy security and maintain stable supply levels.