BP plc BP, the UK-based energy major, has made a significant oil and natural gas discovery in the King Mariout offshore block in Egypt’s northern Mediterranean waters. The find was confirmed by Egypt’s prime minister Mostafa Madbouly during a press conference, with more details expected soon.
The King Mariout exploration well is strategically located near BP’s existing facilities and subsea pipelines in the West Nile Delta project. This proximity is expected to streamline the integration of the new reserves into Egypt’s energy infrastructure, supporting the country’s goal of increasing domestic production.
This discovery came amid heightened offshore drilling activity in the Mediterranean. Over the past six months, major players like Chevron, ExxonMobil, Eni and BP have been actively exploring key fields, including Khanjar-1, Nefertari-1 and Zohr.
BP has been advancing its offshore developments in the region. The company recently completed the drilling of two additional gas production wells at the Raven Field and in the Mediterranean, with gas output expected to commence this month. Following this, BP has now shifted its focus to the King Mariout block, targeting natural gas in the Lower Miocene layer. Drilling is expected to reach its reservoir by the end of the month.
BP is also strengthening its gas business in Egypt through a joint venture (JV) with ADNOC, known as BP-XRG JV. This partnership aims to enhance Egypt’s gas production and contribute to the country’s broader goal of drilling 586 oil and gas wells by 2030. The JV, majority-owned by BP with a 51% stake, is set to begin operations in Egypt as ADNOC expands its global footprint.
BP’s latest discoveries and partnerships highlight its deepening commitment to Egypt’s energy sector, reinforcing its role as a key player in the Mediterranean’s natural gas landscape.
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift.
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