BP commits $1.5bn to boost Egyptian presence

BP plc

Global oil major BP is set to invest up to $1.5 billion in exploration activities in Egypt, with potential expansion to nearly $5 billion, said CEO Murray Auchincloss.

The company aims to capitalise on the current oil and gas exploration opportunities, the UAE’s state-run Wam news agency reported, citing the CEO.

The investments are geared towards meeting the growing local demand and supporting Egypt’s strategy to export surplus energy, Auchincloss added.

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BP’s activities align with Egypt’s goal of transforming into a regional hub for energy production and trade, said Egyptian presidency spokesman Ahmed Fahmy. 

The UAE’s Adnoc and BP last week agreed to form a joint venture in Egypt, initially focusing on natural gas.

The joint venture will be 51 percent owned by BP and 49 percent by Adnoc, which is expected to be set up in the second half of 2024. 

The venture’s concessions include Shorouk, North Damietta, North El Burg, North El Tabya, Bellatrix-Seti East and North El Fayrouz.

The Egyptian government in January raised the prices of several services, including electricity, metro tickets and telecommunication services, to contain a budget deficit.