BP expands Egypt energy push with five new Mediterranean gas wells

At a Glance

• BP signs deal to drill five new Mediterranean deepwater gas wells in Egypt.
• Egypt’s declining gas output drives push for foreign investment and exploration.
• BP reinforces long-term commitment as Cairo seeks to revive the hydrocarbon sector.

BP is deepening its footprint in Egypt’s energy sector, signing a preliminary deal with the Egyptian Natural Gas Holding Company (EGAS) to drill five new deepwater gas wells in the Mediterranean Sea.

The agreement, disclosed by Egypt’s Petroleum Ministry, underscores the British energy giant’s strategy to expand exploration at a time when the North African nation is grappling with declining gas production.

Egypt faces energy shift with slowing gas fields

Egypt, once a net exporter of natural gas, has increasingly turned to imports to cover rising domestic demand as output from mature fields falls and foreign investment in new projects slows.

According to the Joint Organisations Data Initiative, the country’s gas production in May stood at 3,545 million cubic meters—down more than 40% from its March 2021 peak.

Drilling of the new wells, at depths ranging between 300 and 1,500 meters, is expected to begin next year. Any future output will be directed to existing facilities in the West Nile Delta, BP said. The company has operated in Egypt for more than 60 years, making the country a cornerstone of its global portfolio.

BP commits to Egypt amid global expansion

The expansion comes as BP reviews how to allocate its $13–$15 billion annual capital expenditure across major projects in Azerbaijan, Iraq, Libya, and Abu Dhabi, alongside new discoveries in Namibia and Brazil—its largest in a quarter century.

The Egyptian agreement signals the company’s commitment to maintaining its presence in one of the world’s fastest-growing energy markets.

Cairo, meanwhile, has been pushing to attract international partners to reinvigorate its hydrocarbons sector. 

On August 30, the Petroleum Ministry announced four agreements worth more than $340 million with Shell, Italy’s Eni, and Arcius Energy—a joint venture 51% owned by BP and 49% by ADNOC’s investment arm, XRG—for exploration in the Mediterranean and Nile Delta.

Egypt advances gas ambitions with BP partnership

Headquartered in London, BP remains one of the world’s largest integrated energy companies, operating across the oil, gas, and chemicals value chain. 

The latest Egypt deal adds momentum to the country’s ambition to restore its position as a regional gas hub while helping BP strengthen its Mediterranean portfolio amid rising global demand for natural gas.