Egyptian minister says BP's proposed sale to Energean will be blocked
Egypt's petroleum minister told BP that the government will reject its plan to sell Egyptian oil and gas assets to Energean, citing security and technical concerns.
During a Thursday meeting in Cairo, Petroleum Minister Karim Badawy conveyed to BP Executive Vice President Gordon Birrell that the Egyptian government will block BP's proposed divestiture of certain oil and gas assets to Energean, a company with majority Israeli ownership. Officials cited national-security imperatives and a pronounced gap in deep-water drilling expertise as the rationale. Egyptian law requires the Egyptian General Petroleum Corporation (EGPC) to exercise pre-emptive rights or grant approval for any change in concession ownership.
The decision aligns with a broader government push to raise domestic gas production as consumption rises and gas prices strain the budget. BP, responsible for roughly 60 % of Egypt's gas, had been in exclusive talks with Energean, prompting parliamentary inquiries into the buyer's financial solvency and technical capacity. The minister also cancelled a scheduled trip to the United Kingdom to discuss the deal, underscoring the government's firm stance.
Why it matters
The block could alter Egypt's energy strategy and affect regional gas markets amid a domestic shortage.
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