LONDON, May 15, 2026, 12:08 BST
BP PLC is weighing the possible sale of certain natural gas holdings in Egypt, according to four people familiar with the situation, Reuters reported. Sources emphasized that BP hasn’t made a final call yet. When asked, a BP spokesperson declined to address what they described as market speculation. The oil giant, under new CEO Meg O’Neill, has funneled over $35 billion into Egypt over a span of sixty years and is responsible for around 60% of Egypt’s gas output via a combination of operated fields and joint ventures.
The timing is key. O’Neill, who stepped in as CEO on April 1, has informed staff that BP will kick off a reorganisation in June, splitting into two core divisions: upstream—covering oil and gas output—and downstream, which handles refining, trading, and fuel sales. BP described the move as a way to create “a simpler, stronger, more valuable BP,” streamlining the company around its upstream and downstream businesses. Reuters
BP’s trading arm delivered a windfall this quarter, but the numbers on its balance sheet remain in focus. First-quarter profit landed at $3.2 billion, more than twice last year’s figure, as oil price swings linked to the Iran war played out. Still, net debt ticked up to $25.3 billion. The company also announced plans to cut its hybrid bonds—those instruments blending debt and equity—by roughly $4.3 billion. “We’re controlling what we can control,” O’Neill told Reuters last month, highlighting moves to boost production elsewhere. Reuters
BP’s position in Egypt is hardly minor. Its production there dropped to 518 million cubic feet per day last year—down roughly 40% from 2024, and close to 60% from 2023, according to Reuters. That slump comes as Egypt tries to juggle soaring gas demand; Cairo hiked gas prices for several sectors in May, while import costs shot up in a turbulent energy market.
Growth continues elsewhere. On Wednesday, BP announced it’s picked up a 40% stake in a production sharing agreement for six oil and gas exploration blocks in Uzbekistan’s Ustyurt region. Under a PSA, partners divvy up costs, production, and entitlements. “We believe Uzbekistan has significant resource potential,” said Gio Cristofoli, BP’s regional president for Azerbaijan, Georgia and Türkiye. Reuters
The Egypt review doesn’t signal a sweeping exit from oil and gas; it’s more about reshuffling the portfolio. BP is either selling off or reconsidering some of its older, slower-growing assets, but it’s also snapping up land where it expects better returns. The shift is clear enough. BP has swung away from the greener strategies that Bernard Looney championed and is now doubling down on fossil fuels.
Competition isn’t standing still either. Shell posted first-quarter adjusted earnings of $6.92 billion, with refining and oil trading providing a lift. According to Reuters, Shell, BP, and TotalEnergies saw bigger gains from price swings than their American counterparts. Trading desks have given Europe’s majors some cover in a choppy market, though these gains aren’t consistently reliable.
Eni, another key player in Egypt, reported a gas and condensate find back in April at the Denise W-1 well within the Temsah Concession. The Italian company pegged the discovery at roughly 2 trillion cubic feet of gas in place, plus about 130 million barrels of condensate. Eni holds a 50% operating stake in the Denise Development Lease, working alongside BP.
There’s a chance BP won’t get the price it’s after if it moves to sell, or it could end up with a smaller presence in a market where it’s traditionally been a major player. Juggling Egypt’s gas needs, subsidy issues and rising import costs only adds more layers to any asset moves there. One more risk: should oil prices slip before BP manages to reduce its leverage, the trading gains that boosted first-quarter numbers might vanish just as fast.
Oil markets remain in a holding pattern. Emily Ashford, who leads Energy Research at Standard Chartered Bank, told Rigzone that multiple factors have managed to “contain massive price escalation” since the onset of the conflict—though that restraint, she said, might not hold for long. Alan Gelder at Wood Mackenzie noted that if the Strait of Hormuz stays closed for an extended period, global inventories would shrink fast, sending prices up. Rigzone
BP holders eyeing Egypt see it as just one thread in O’Neill’s broader push—speeding up cash generation, cutting complexity, and proving the oil-and-gas pivot has teeth. Watch for June’s reorg, the next round of asset sales, and the moment debt finally dips before trading gains lose steam.
