BP Starts Fayoum-4 Production, Adding 80 MMcf/d to Egypt’s Gas Supply
Key Takeaways
- •Fayoum-4 began producing natural gas in Egypt’s West Nile Delta roughly two years earlier than planned.
- •The well is adding about 80 million cubic feet per day of gas.
- •BP used existing wells, pipeline links and processing facilities to bring the project onstream without new subsea infrastructure.
- •Egypt’s lower domestic production has pushed the country to import LNG again after previously being a net exporter.
- •Energean is in exclusive talks to buy BP’s West Nile Delta producing interests and its Temsah contractor stake in a deal that could be worth about $1 billion.
BP has started production from the Fayoum-4 well in Egypt’s West Nile Delta, roughly two years ahead of schedule, adding around 80 million cubic feet per day of natural gas to a market where declining domestic output has pushed Cairo back into large-scale LNG imports, Egyptian media reported on Monday.
The well was tied into BP’s existing West Nile Delta processing facilities through the Giza-Fayoum pipeline, avoiding the need for new subsea infrastructure. BP operates the facilities with an 82.75% interest, while Harbour Energy holds the remaining 17.25%.
BP discovered Fayoum during its 2025 exploration campaign and later drilled a sidetrack from the existing well to access new Messinian reservoir layers at a depth of around 3,000 meters. By using the existing well, pipeline and processing facilities, BP brought first production forward by about two years.
For Egypt, the timing matters because domestic production has fallen sharply since its 2021 peak, forcing the country to give up its role as a net LNG exporter and spend billions of dollars on imported cargoes. Years of unpaid bills to international oil and gas companies also contributed to the decline by discouraging investment and slowing drilling activity. Cairo has since paid down billions of dollars in arrears as it seeks to bring producers back to the fields and reverse output losses.
BP plans to invest about $1.5 billion in Egyptian natural gas exploration and development in the 2026/27 fiscal year. Petroleum Minister Karim Badawi announced the investment in March, as BP prepared a five-well Mediterranean drilling campaign that included Fayoum-4.
The start of production also follows BP’s decision to place part of its Egyptian portfolio up for sale. Last week, Energean entered exclusive negotiations to acquire BP’s interests in producing West Nile Delta assets and its 50% contractor interest in the Temsah concession in a transaction that could be worth about $1 billion. BP would retain assets held through Arcius Energy, its joint venture with Abu Dhabi’s XRG, including its interest in the giant Zohr gas field.
By Charles Kennedy for Oilprice.com
