ADNOC, BP forge gas joint venture in Egypt

UAE's ADNOC and BP have joined forces to establish a gas joint venture (JV) in Egypt, marking a step in their commitment to growing a competitive gas portfolio, the companies said on February 14. 

The joint venture will be structured with a majority stake held by BP at 51%, and ADNOC securing the remaining 49%. This partnership aims to leverage the combined capabilities and proven expertise of both entities, fostering a strategic collaboration for the development of a competitive gas portfolio in Egypt.

As part of the agreement, BP will contribute its interests in three development concessions and exploration agreements in Egypt to the newly formed JV. These include Shorouk (BP 10% interest, containing the producing Zohr field), North Damietta (BP 100% interest, containing the producing Atoll field), North El Burg (BP 50% interest, containing the undeveloped Satis field), and North El Tabya, Bellatrix-Seti East, and North El Fayrouz exploration concession agreements.

ADNOC, in turn, will provide a proportionate cash contribution, earmarked for future growth opportunities within the scope of the joint venture.

The formation of the incorporated JV is contingent upon regulatory approvals and clearances and is anticipated to be completed during the second half of 2024.