BP is evaluating the potential sale of some of its natural gas assets in Egypt, as part of a broader strategy by newly appointed CEO Meg O'Neill to reduce debt and refocus on higher-profit assets. The company's net debt stood at $22.2 billion in 2025, with a target to lower it to between $14 billion and $18 billion by 2027 through increased cash flow, disciplined capital allocation, and asset divestitures.

Background and Current Operations

BP has operated in Egypt for over 60 years and currently produces approximately 60% of the country's gas through joint ventures in the East Nile Delta and its operated fields in the West Nile Delta. However, the company's gas production in Egypt has declined significantly, dropping to 518 million cubic feet per day—a decrease of about 40% from 2024 and nearly 60% from 2023, according to its latest annual report. Supermajors typically sell mature assets that yield lower returns compared to newer ones.

Potential Sale and Joint Venture

According to Reuters, citing four sources close to the matter, some Egyptian assets may be divested, though no final decisions have been made. BP has declined to comment on market speculation. In 2024, BP formed the Arcius Energy joint venture with ADNOC-owned XRG to explore and develop gas assets, starting in Egypt. The assets assigned to Arcius include a 10% stake in Eni's Zohr gas field, a 100% interest in the North Damietta concession (hosting the producing Atoll field), and the North El Tabya, Bellatrix-Seti East, and North El Fayrouz exploration blocks. Additionally, Arcius now controls the El Burg Offshore concession, where a final investment decision was recently made on the $500-million Harmattan gas project.