British oil company BP and the UAE’s Abu Dhabi National Oil Company (ADNOC) have announced their plans to form a joint venture in Egypt to develop gas assets.
BP will own 51% of the joint venture and ADNOC the remaining 49%, the companies said.
As part of the agreement, BP will transfer its interests in three development concessions and exploration agreements in Egypt: its 10% stake in Shorouk, a 50% interest in North El Burg and the North Damietta offshore block.
Meanwhile, ADNOC will make a proportionate cash contribution that will support future growth opportunities.
“Today’s announcement with bp represents a significant step forward as ADNOC builds its
international natural gas portfolio,” said Musabbeh Al Kaabi, ADNOC executive director for low carbon solutions and international growth.
“This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country.”
William Lin, BP’s executive vice president of regions, corporates & solutions, added that the two companies together 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 joint venture is expected to be formed in the second half of 2024, subject to regulatory approvals.
