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Adnoc and BP in Egypt JV to develop gas assets

The joint venture is expected to be completed in the second half of 2024, pending regulatory approvals

Published: Wed 14 Feb 2024, 6:01 PM

Updated: Wed 14 Feb 2024, 6:02 PM

By
Issac John

Global energy giants, Abu Dhabi National Oil Company and BP announced on Wednesday an agreement to form a new joint venture in Egypt with a focus on natural gas.

As part of the agreement, BP will contribute its interests in three Egyptian development concessions and exploration agreements while Adnoc will make a proportionate cash contribution for use in future growth opportunities, the two companies said in a statement.

The JV will be a collaboration between BP, holding a 51 per cent interest, and Adnoc, with a 49 per cent stake. The joint venture is expected to be completed in the second half of 2024, pending regulatory approvals.

Musabbeh Al Kaabi, Adnoc executive director for Low Carbon Solutions and International Growth, said the announcement with BP represented 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. Building on our long-standing strategic partnership with BP, Adnoc looks forward to continuing exploring other opportunities as we collectively seek to decarbonise our operations and lead a just and equitable energy transition.”

William Lin, executive vice-president of regions, Corporates & Solution at BP, said the 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.”

The concessions to be included in the JV are Shorouk, where bp holds a 10 per cent interest and contains the producing Zohr field operated by Belayim Petroleum; North Damietta, where bp holds a 100 per cent interest and contains the producing Atoll field operated by Pharaonic Petroleum Company; North El Burg, where bp holds a 50 per cent interest and contains the undeveloped Satis field operated by PhPC; North El Tabya, and the Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

Alongside partners, BP is a major player in Egypt, producing 70 per cent of the country's gas through its gas development projects in the West and East Nile Deltas.