Cairo’s unease over BP’s choice of London- and Tel Aviv-listed Energean as the buyer for a $1bn package of Egyptian gas assets has put the government’s approval powers in focus at a time when Egypt’s upstream M&A market is heating up. Energean’s finances have been scrutinized since talks emerged in August, but concern over its ownership is a newer development (MEES, 4 September).
The government’s reservations appear twofold. MEES sources verify local media reports that Energean’s majority-Israeli shareholder base has been raised as a source of concern, while officials are also questioning whether a smaller independent can match BP’s technical depth and financial firepower, particularly for the deepwater drilling and development work still required across the portfolio. (CONTINUED - 892 WORDS)
