ADNOC and bp announce gas joint venture for Egypt
Published on: Feb 14, 2024
The agreement deepens the companies’ long-standing partnership and complement their growth plans for the region.
ADNOC and bp have announced the forming of a new joint venture in Egypt in an effort 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 and own 51% of it. ADNOC, with 49% of ownership, will make a proportionate cash contribution which can be used for future growth opportunities.
“This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades,” said William Lin, bp’s executive vice president of regions, corporates & solutions.
The JV includes bp’s 100% interest in North Damietta, operated by Pharaonic Petroleum Company; its 50% interest in North El Burg, also operated by Pharaonic; 10% interest in Shorouk, operated by Belayim Petroleum; and exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.
“This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country,” added Musabbeh Al Kaabi, Executive Director for low carbon solutions and international growth at ADNOC.
Subject to regulatory approvals and clearances, the formation of the incorporated JV is expected to complete during the second half of 2024.
