ADNOC and bp to Launch a Strategic Gas Joint Venture in Egypt

The Abu Dhabi National Oil Company (ADNOC) and bp have recently unveiled plans to establish a new joint venture (JV) in Egypt, marking a significant stride in their collaborative efforts. This JV, with ownership split between bp at 51% and ADNOC at 49%, aims to cultivate a highly competitive gas portfolio by leveraging both companies' extensive technical expertise and successful track records.

Under the terms of the agreement, bp will integrate its stakes in three development concessions along with exploration agreements in Egypt into the new JV. In parallel, ADNOC will contribute a proportionate cash investment to support future growth initiatives within the venture. Musabbeh Al Kaabi, ADNOC's Executive Director for Low Carbon Solutions and International Growth, emphasized the venture's role in bolstering Egyptian energy security and fostering economic growth within the Arab world's most populous nation. He highlighted the venture as a pivotal move in ADNOC's strategy to expand its international natural gas portfolio.

William Lin, bp’s Executive Vice President of Regions, Corporates & Solutions, reflected on the venture as an extension of the five-decade-long strategic alliance between ADNOC and bp. He underscored the commitment to continue delivering secure, lower-carbon energy to Egypt, building upon bp's 60-year legacy of safe and efficient operations in the country.

The concessions included in the JV encompass Shorouk, which houses the Zohr field with bp holding a 10% interest and operated by Belayim Petroleum (Petrobel); North Damietta, fully owned by bp and containing the Atoll field operated by Pharaonic Petroleum Company (PhPC); North El Burg, where bp has a 50% stake in the undeveloped Satis field operated by PhPC; and exploration concession agreements for North El Tabya, Bellatrix-Seti East, and North El Fayrouz.

The formation of this incorporated JV is subject to regulatory approvals and clearances, with an anticipated completion date in the second half of 2024. This partnership not only signifies a milestone in ADNOC and bp's longstanding collaboration but also represents a forward-looking endeavor aimed at enhancing regional energy security and supporting sustainable economic development through the strategic expansion of natural gas resources.

Source via WAM