BP and Abu Dhabi National Oil Company (ADNOC) have made an agreement to form a new joint venture (JV) that will focus initially on development of gas interests in Egypt.
The JV (51% BP and 49% ADNOC) will combine the pair’s deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio.
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 which can be used for future growth opportunities.
BP will transfer interests to JV in Shorouk (BP 10%, contains the producing Zohr field) operated by Belayim Petroleum (Petrobel); North Damietta (BP 100% interest, contains the producing Atoll field) operated by Pharaonic Petroleum Company (PhPC), and North El Burg (BP 50% interest, contains the undeveloped Satis field) operated by PhPC, along with exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
Together with its partners, BP currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.
“Today’s announcement with BP represents a significant step forward as ADNOC builds its international natural gas portfolio. This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country,” said Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth.
“This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades. Together, we will build on the 60 years of safe and efficient operations of bp and its partners in Egypt, and continue to produce and deliver secure, lower-carbon energy in the form of natural gas to the country,” added William Lin, BP’s Executive Vice President of Regions, Corporates & Solutions.