BP and Abu Dhabi National Oil Company (Adnoc) have agreed to form a joint venture to develop gas assets in Egypt. The joint venture will focus on enhancing Egyptian energy security and the economic potential of the region’s most populous Arab country. As part of the agreement, BP will transfer its interests in three development concessions and exploration agreements in Egypt to the joint venture.
At the same time, Adnoc will make a proportionate cash contribution that can be used for future growth opportunities. The assets include BP’s 10% stake in the Shorouk concession, which contains the giant Zohr gas field, and the North Damietta offshore block in Egypt’s Nile Delta.
BP will also transfer a 50% interest in the North El Burg offshore concession to the new joint venture. The formation of the joint venture is expected to be completed in the second half of 2024, subject to regulatory approvals. The deal will also enable Adnoc to build its international natural gas portfolio. This agreement represents a significant step forward as Adnoc builds its international natural gas portfolio, said Musabbeh Al Kaabi, Adnoc’s executive director for low-carbon solutions and international growth.
Egypt, with a population of over 100 million, aims to be a regional energy supplier. This involves selling its gas and exporting liquefied natural gas (LNG) sourced from Israel to countries in the Middle East, Africa, and Europe. The discovery of the Zohr field in 2015 was a turning point for the country’s oil and gas sector. The find has attracted substantial foreign investment from Italy’s Eni while encouraging other international oil companies (IOCs) such as Chevron, Shell, and BP to bid for blocks offered in Egypt’s onshore and offshore concessions.
