The UK oil and gas group BP and the United Arab Emirates' energy group ADNOC have agreed to form a new joint venture (JV) in Egypt to complement the companies’ strategic growth plans in the region, initially focusing on the development of gas assets.
The JV (51% BP and 49% ADNOC) will benefit from B¨P’s interests in three development concessions and exploration agreements in Egypt, while ADNOC will make a proportionate cash contribution to be used for future growth opportunities. The agreement includes the concession of BP’s 10% interest held in Shorouk (operated by Belayim Petroleum (Petrobel)), the 100% interest in North Damietta (operated by Pharaonic Petroleum Company (PhPC)), the 50% interest in North El Burg (also operated by PhPC), and the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements. The JV formation is still subject to regulatory approvals and is expected to be completed by the second half of 2024.
ADNOC, or the Abu Dhabi National Oil Company, is headquartered in Abu Dhabi, UAE, and is the world's 12th largest oil company by production. It is a major player in the oil and gas industry, focusing on being a low-cost and lower-carbon producer.