British energy company BP has signed a new agreement with the Egyptian Ministry of Petroleum to drill five offshore natural gas wells in the Mediterranean where the oil company already has existing concessions.
Local sources confirmed the development on Wednesday that the deal follows a MoU signed last month in London between BP and the state-run Egyptian Natural Gas Holding Company(EGAS).
The new agreement is aimed at accelerating gas production and expanding Egypt’s offshore reserves and opens a new phase in BP’s exploration and development in the region.
The new programme includes sidetrack, development and exploration wells, and targets faster production using existing infrastructure in the West Nile Delta.
Although the actual drilling will begin in the second quarter of 2026, the development comes just days after Eni committed up to $8 billion to boost output at key gas fields (including the giant Zohr field) over the next five years.
Valaris secures $140 million drilling contract
The drilling campaign will be handled by the New York-listed offshore drilling company Valaris. Its drillship DS-12 deepwater rig will be used for the operation, which involves a water depth range of between 300 metres to 1,500 metres.
The estimated total contract value of the campaign (inclusive of a mobilization fee) is approximately $140 million, and includes three option wells. It is estimated to last for 350 days.
“We are pleased that DS-12 will return to Egypt with bp, building on our successful exploration campaign together. With this award, we continue to execute our commercial strategy, having now contracted all four drillships that have near-term availability”.
“Looking ahead, we expect to secure additional attractive work for our high-specification drillships,” said Anton Dibowitz, president and chief executive officer at Valaris.
BP’s operation in Egypt
BP is a key gas producer in Egypt and a partner in several major offshore projects.
The current move comes after a successful exploration campaign earlier this year, which included discoveries at the Fayoum-5 and El King-2 wells.
The company aims to increase its production capacity to between 2.3 and 2.5 million barrels of oil equivalent per day by 2030, with further growth projected through 2035.
However, BP Regional President for the MENA region Nader Zaki, says the new agreement will help sustain production from the West Nile Delta and support domestic energy needs over the coming years.
Egypt continues to take bold steps to boost production and reduce reliance on imports amid growing domestic demand.
Currently, the government has asked LNG suppliers in the country to defer nominated deliveries until the opening months of next year to meet a huge demand gap.
