UK BP Sells Egyptian Oil, Grows Gas Assets

UK major BP has agreed to sell its interests in Gulf of Suez oil concessions in Egypt to Emirates National Oil Company subsidiary Dragon Oil, it said June 3. But it will retain its growing gas assets. 

The deal is expected to complete during the second half of 2019 and is part of BP’s plan to divest more than $10bn of assets globally over the next two years. Financial details are not being disclosed.

BP CEO Bob Dudley said Egypt "is a core growth and investment region for BP. In the past four years we have invested around $12bn in Egypt – more than anywhere else in our portfolio – and we plan another $3bn investment over the next two years. We look forward to continuing to broaden our business here, working closely with the government of Egypt as we develop the country’s abundant resources.”

BP said "Dragon Oil is well-placed to operate these mature assets, delivering further value for Egypt.”

In the past two years, BP has started up four new gas projects in Egypt this year. When fully onstream in 2019, combined West Nile Delta production is expected to reach up to 1.4bn ft³/day, equivalent to about a fifth of Egypt’s current gas production. All the gas produced will be fed into the national gas grid. 

The BP-operated Atoll Phase One gas project began production in early 2018. The Eni-operated Zohr gas field, in which BP is a partner, began production late 2017. BP produces, with its partners, close to 60% of Egypt’s gas production, it said.