RIYADH: Abu Dhabi National Oil Co. and British energy company BP on Wednesday signed 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. Additionally, ADNOC will make a proportionate cash contribution for use in future growth opportunities, the British company said in a statement.
The JV will be a collaboration between BP, holding a 51 percent interest, and ADNOC, with a 49 percent stake.
The concessions to be included in the JV are Shorouk, where BP holds a 10 percent interest and contains the producing Zohr field operated by Belayim Petroleum; North Damietta, where BP holds a 100 percent interest and contains the producing Atoll field operated by Pharaonic Petroleum Co.; North El Burg, where BP holds a 50 percent 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.
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 deal 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,” Al-Kaabi added.
William Lin, BP’s executive vice president of regions, corporates and solutions, said the joint venture “offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades.”
Alongside partners, BP is a major player in Egypt, producing 70 percent of the country’s gas through its gas development projects in the West and East Nile Deltas.
