ADNOC and bp are forming a new joint venture to develop gas assets in Egypt
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. The JV (51% bp and 49% ADNOC) will see bp contribute its interests in three development concessions, as well as exploration agreements, in Egypt. The concessions to be included are Shorouk, North Damietta and North El Burg, along with the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements. ADNOC will make a proportionate cash contribution to be used for future growth opportunities.
Step forward
Musabbeh Al Kaabi, ADNOC executive director for Low Carbon Solutions and International Growth, said, “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. Building on our long-standing strategic partnership with bp, ADNOC looks forward to continue exploring other opportunities as we collectively seek to decarbonise our operations and lead a just and equitable energy transition.”
William Lin, bp's executive vice president of Regions, Corporates & Solutions, said, “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.”
The formation of the incorporated JV is expected to complete during the second half of 2024.
