Dubai: ADNOC and UK's bp will launch a joint venture in Egypt, with the aim to grow a 'highly competitive' gas portfolio.
As part of the deal, bp will contribute its existing interests in three Egypt development concessions, apart from exploration agreements, into the new JV. ADNOC will make a 'proportionate' cash contribution that can be used for future growth opportunities.
“Today’s announcement with bp represents a significant step forward as ADNOC builds its international natural gas portfolio," said Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth.
"This joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country. Building on our long-standing strategic partnership with bp, ADNOC looks forward to continue exploring other opportunities as we collectively seek to decarbonize our operations and lead a just and equitable energy transition.”
bp and ADNOC have had an association on various projects over 50 years. "We will build on the 60 years of safe and efficient operations of bp and its partners in Egypt, and continue to produce and deliver secure, lower-carbon energy in the form of natural gas to the country,” said William Lin, Executive Vice President of Regions, Corporates & Solutions at bp.
The Egypt concessions to be included in the new JV, which will come into effect in H2-2024, include:
- Shorouk (bp 10% interest, contains the producing Zohr field) operated by Belayim Petroleum (Petrobel);
- North Damietta (bp 100% interest, contains the producing Atoll field) operated by Pharaonic Petroleum Company (PhPC);
- North El Burg (bp 50% interest, contains the undeveloped Satis field) operated by PhPC; and
- North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.
