ADNOC and bp, two major players in the energy industry, have announced their plans to form a joint venture in Egypt. This partnership aims to expand their gas portfolio and capitalize on their combined technical expertise and successful track records. With bp holding a majority stake of 51% and ADNOC holding 49%, the joint venture is set to become a formidable force in the Egyptian energy market.
As part of the agreement, bp will contribute its interests in three development concessions and exploration agreements in Egypt to the new JV. ADNOC, on the other hand, will make a proportionate cash contribution that can be utilized for future growth opportunities. This collaboration not only strengthens the partnership between the two companies but also enhances Egyptian energy security and boosts the economic potential of the country.
Musabbeh Al Kaabi, ADNOC’s executive director for low carbon solutions and international growth, expressed his enthusiasm for the joint venture, stating that it marks a significant step forward for ADNOC’s international natural gas portfolio. He emphasized the importance of this partnership in driving the decarbonization efforts of both companies and leading a just and equitable energy transition.
William Lin, bp’s executive vice president of regions, corporates & solutions, echoed Al Kaabi’s sentiments, highlighting the long-standing strategic partnership between bp and ADNOC that spans over five decades. He emphasized that this dynamic joint venture provides a platform for international growth and enables them to continue delivering secure, lower-carbon energy in the form of natural gas to Egypt.
The concessions included in the joint venture are Shorouk, North Damietta, and North El Burg. Shorouk, in which bp holds a 10% interest, is home to the producing Zohr field and is operated by Belayim Petroleum (Petrobel). North Damietta, in which bp holds a 100% interest, contains the producing Atoll field and is operated by Pharaonic Petroleum Company (PhPC). Lastly, North El Burg, in which bp holds a 50% interest, contains the undeveloped Satis field and is also operated by PhPC. Additionally, the joint venture will include exploration concession agreements for North El Tabya, Bellatrix-Seti East, and North El Fayrouz.
The formation of the joint venture is subject to regulatory approvals and clearances, with completion expected during the second half of 2024. Once established, the joint venture will undoubtedly have a significant impact on the Egyptian energy market, leveraging the strengths and expertise of both ADNOC and bp to drive growth and deliver sustainable energy solutions.
In conclusion, the partnership between ADNOC and bp in Egypt marks a significant milestone in their long-standing strategic alliance. By combining their technical capabilities and proven track records, they aim to expand their gas portfolio and contribute to Egyptian energy security. This joint venture not only strengthens their partnership but also paves the way for future growth opportunities and a more sustainable energy future.