Abu Dhabi’s ADNOC and UK-based bp will form a joint venture in Egypt, they said on Wednesday.
The JV (51 percent owned by bp and 49 percent by ADNOC) aims to grow their highly competitive gas portfolio.
Subject to regulatory approvals, the JV is likely to be complete in the second half of 2024.
Read: ADNOC Gas inks 10-year deal with Indian firm to supply 0.5 million tons of LNG
As part of the agreement, bp will contribute its interests in three development concessions as well as exploration agreements in Egypt to the new JV. ADNOC will make a proportionate cash contribution that can be used for future growth opportunities.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “Today’s announcement with bp represents a significant step forward as ADNOC builds its international natural gas portfolio.
“…ADNOC looks forward to continue exploring other opportunities as we collectively seek to decarbonize our operations and lead a just and equitable energy transition.”
bp’s William Lin, Executive Vice President of Regions, Corporates & Solutions, said: “This JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades.”
Concessions in the gas JV:
- Shorouk (in which bp has 10 percent interest and contains the producing Zohr field) operated by Belayim Petroleum (Petrobel)
- North Damietta (bp’s 100 percent interest, contains the producing Atoll field) operated by Pharaonic Petroleum Company (PhPC)
- North El Burg (bp’s 50 percent interest, contains the undeveloped Satis field) operated by PhPC
- North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.
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