UAE’s state-owned energy company Abu Dhabi National Oil Company (ADNOC) and British oil and gas firm BP have agreed to create a new gas joint venture (JV) in Egypt.
BP and ADNOC will hold an interest of 51% and 49%, respectively in the proposed JV.
The new entity will initially focus on the development of gas assets in Egypt. The JV is also expected to grow a highly competitive gas portfolio by combining the technical capabilities and proven track records of both companies.
For the JV, the British company will contribute its interests in three development concessions and exploration agreements in Egypt, while ADNOC will provide a proportionate financial contribution that can be utilised for future growth opportunities.
ADNOC low carbon solutions and international growth executive director Musabbeh Al Kaabi said: “Today’s announcement with bp represents a significant step forward as ADNOC builds its international natural gas portfolio.
“This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country.”
The proposed entity`s concessions will include Shorouk, North Damietta, and North El Burg.
Besides, it will have North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.
BP holds a 10% stake in Shorouk, which contains the producing Zohr field. It is operated by Belayim Petroleum (Petrobel).
The North Damietta concession, which is fully owned by BP, has the producing Atoll field and is operated by Pharaonic Petroleum Company (PhPC).
PhPC also operates the North El Burg concession, which includes the undeveloped Satis field. The concession is owned by BP with a 50% stake.
BP regions, corporates and solutions executive vice president William Lin said: “This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades.
“Together, we will build on the 60 years of safe and efficient operations of BO 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 formation of the incorporated JV, which is subject to regulatory approvals and clearances, is anticipated to be completed during the second half of this year.
