Gas major BP has announced $1 billion natural gas expansion in Egypt. In a conversation with CNBC's Dan Murphy, Bob Dudley, CEO of BP spoke about his outlook on the sector.

Dudley said that he is not too concerned about the macro situation in Egypt.

"We have the tragic circumstances in Venezuela, Libya has got some uncertainty to it and there is a lot of uncertainty around Iran and the sanctions. The Organistaion of Petroleum Exporting Companies (OPEC) plus countries agreed to reduce production in the first quarter, we don't really have data from it, we will have to see what the data looks like, but the market feels tight to me," Dudley said.

"We plan BP on a sort of fair rate which I think is good for the world, between $50 and $65 per barrel is good for producers and consumers. We are USD 62 per barrel today, so we are within that fair rate," he added.