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Market Chatter: Energean Eyes Part of BP's Egypt Oil, Gas Portfolio in Deal Worth About $1 Billion

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Energean is holding exclusive talks to buy part of BP's (BP) upstream oil and gas portfolio in Egypt in a deal that could generate about $1 billion for BP, Reuters reported Thursday, citing two people involved in the process.

The proposed transaction spans BP's West Nile Delta interests, held jointly with Harbour Energy, plus a 50% contractor working interest in the Temsah concession. Eni (E), a Temsah co-owner, said the Denise West well uncovered an estimated 2 trillion cubic feet of gas, with partners and Egypt targeting a final investment decision in the coming months.

BP would keep its Egyptian holdings in the Arcius joint venture with UAE-based XRG, including the Zohr gas field, as it works to cut debt and simplify its portfolio, the sources said. Energean has signaled that it seeks to expand beyond its gas fields off Israel, which were shut down amid regional conflicts.

BP and Energean did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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