BP’s CEO said the company plans to inject up to $1.5 billion in exploration activities in Egypt within the next few years, with the potential of pumping further investments worth nearly $5 billion.
Murray Auchincloss stated that BP seeks to maximise the benefit from the current facilitation on oil and gas exploration activities in land and sea areas to speed up development and production plans to meet the growing demand of the local market and to support the state’s endeavours to export the surplus of energy.
This came as Egyptian President Abdel Fattah El-Sisi met with Auchincloss on the sidelines of the Egypt Energy Show, EGYPES 2024. The meeting was also attended by Prime Minister Dr. Mostafa Madbouly, Minister of Petroleum and Mineral Resources Tarek El Molla, and BP Regional President, Middle East and North Africa, Nader Zaki.
El-Sisi confirmed that BP’s activities are aligned with Egypt’s goal of transforming into a regional hub for energy production and trade. He underscored the state’s commitment to facilitating the operations of international companies and the private sector in this domain.
Joint venture with ADNOC
Monday’s announcement comes less than a week after Abu Dhabi’s ADNOC and BP said they will form a joint venture in Egypt.
As part of the agreement, likely to be complete in the second half of 2024, 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.
The JV (51 percent owned by bp and 49 percent by ADNOC) aims to grow their highly competitive gas portfolio.
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.”
