ADNOC and bp have announced their plans to form a new joint venture in Egypt, aiming to expand their gas portfolio in the country. The joint venture will be comprised of 51% bp and 49% ADNOC, combining their technical expertise and successful track records to create a highly competitive gas portfolio.
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 marks a significant milestone for ADNOC as it continues to build its international natural gas portfolio.
Musabbeh Al Kaabi, ADNOC’s executive director for low carbon solutions and international growth, expressed his enthusiasm for the partnership with bp, stating that it will not only enhance Egyptian energy security but also unlock the economic potential of the region’s most populous Arab country. He also emphasized ADNOC’s commitment to decarbonizing its operations and leading a just and equitable energy transition.
William Lin, bp’s executive vice president of regions, corporates & solutions, highlighted the significance of this joint venture in advancing their longstanding and strategic partnership with ADNOC. The partnership between the two companies spans over five decades, and this collaboration offers a platform for international growth. Lin also emphasized bp’s dedication to producing and delivering secure, lower-carbon energy in the form of natural gas to Egypt.
The concessions that will be included in the joint venture are Shorouk, North Damietta, and North El Burg. Shorouk, in which bp holds a 10% interest, contains the producing Zohr field and is operated by Belayim Petroleum (Petrobel). North Damietta, with a 100% interest owned by bp, 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. This collaboration between ADNOC and bp not only strengthens their partnership but also signifies their commitment to expanding their gas portfolio in Egypt. With their combined expertise and resources, they aim to contribute to Egyptian energy security and drive economic growth in the region. As the world transitions towards a more sustainable energy future, this joint venture will play a crucial role in delivering secure and lower-carbon energy to meet the country’s growing demand.
