Key facts
- BP has commenced production from the Fayoum-4 well in Egypt's West Nile Delta.
- The well is expected to add about 80 million cubic feet per day of natural gas.
- Production has started two years ahead of the original schedule.
- This development aims to bolster Egypt's gas supply amidst declining domestic output.
- BP plans a significant investment of approximately $1.5 billion in Egyptian natural gas exploration and development.
BP has initiated production from its Fayoum-4 well in Egypt's West Nile Delta approximately two years ahead of schedule, adding about 80 million cubic feet per day of natural gas to the national supply. This development is crucial for Egypt, which has seen a sharp decline in domestic gas production since its 2021 peak, forcing the country to increase its reliance on costly LNG imports.
The Fayoum-4 well was connected to BP's existing West Nile Delta processing facilities through the Giza-Fayoum pipeline, bypassing the need for new subsea infrastructure. BP operates these facilities with an 82.75% stake, while Harbour Energy holds the remaining 17.25%.
BP discovered the Fayoum field during its 2025 exploration campaign and subsequently drilled a sidetrack to access new Messinian reservoir layers. The utilization of existing infrastructure allowed for the accelerated production timeline.
Egypt's energy sector has been working to reverse production losses, partly caused by years of unpaid bills to international companies. The government has since paid down billions in arrears to encourage investment and production.
Looking ahead, BP intends to invest around $1.5 billion in Egyptian natural gas exploration and development during the 2026/27 fiscal year. This follows a March announcement by Petroleum Minister Karim Badawi regarding BP's planned five-well Mediterranean drilling campaign.
This production start-up occurs as BP is in the process of selling part of its Egyptian portfolio. Energean has entered exclusive negotiations to acquire BP's interests in producing West Nile Delta assets and a 50% stake in the Temsah concession, a deal potentially worth about $1 billion. BP will retain its assets held through Arcius Energy, its joint venture with Abu Dhabi's XRG.