UK-based energy major BP has deepened its partnership with Egypt after signing a memorandum of understanding (MoU) with the state-owned Egyptian Natural Gas Holding Company (EGAS) to drill five offshore gas wells in the Mediterranean Sea.
The agreement, announced by Egypt’s Ministry of Petroleum and Mineral Resources, is aimed at strengthening the country’s natural gas exploration and production capacity. Drilling operations are scheduled to commence in 2026, targeting water depths ranging from 300 to 1,500 metres. The potential resources are expected to feed into existing production infrastructure in the West Nile Delta, extending the life of Egypt’s current gas facilities.
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Egypt’s energy
The signing ceremony took place at BP’s London headquarters during the official visit of Petroleum Minister Karim Badawi, Egypt’s Ambassador to the UK Ashraf Swelam, and Undersecretary for Exploration and Agreements Dr. Geo. Samir Raslan. They met with BP executives including CEO Murray Auchincloss, Executive Vice President for Gas and Low Carbon Energy William Lin, Regional President for MENA Nader Zaki, and BP Egypt President Wail Shaheen.
Zaki said the agreement reflects the strength of BP’s long-standing collaboration with Egypt: “This memorandum represents a strategic step in our investments in Egypt’s energy sector during this decade, enabling us to develop additional gas resources in the West Nile Delta and bring them onstream as quickly as possible to meet the needs of the local market.”
BP emphasized that the planned drilling campaign is intended to accelerate the development of new reserves and optimize the use of existing facilities. Depending on exploration results, some discoveries could be tied back to current production hubs, providing a faster route to market.
The new MoU builds on BP’s recent exploration success. In the first half of 2025, the company made ten discoveries in Egyptian waters using the Valaris DS-12 drillship. It also follows a broader cooperation agreement signed last year by BP, Eni, EGPC, and EGAS to advance hydrocarbon exploration in the Mediterranean.
William Lin underlined BP’s strategic outlook: “We look forward to applying BP’s technological expertise to build on our recent exploration and development momentum, bringing on new gas resources and accelerated production for the country while delivering value for our business.”
The company has set an ambitious target to raise output to 2.3–2.5 million barrels of oil equivalent per day by 2030, with plans to sustain increased production through to 2035. The Egyptian drilling program is expected to contribute meaningfully to these growth ambitions while reinforcing Egypt’s role as a regional gas hub.