The Israel-based gas producer NewMed Energy has announced that ongoing discussions regarding an offer made by the UK’s BP and the UAE’s ADNOC to buy a 50% stake in NewMed Energy were indefinitely suspended due to ‘uncertainty in the external environment’ (i.e. the escalating conflict between Israel and Palestine and that attack of cargo ships by the Houthis in the Red Sea). BP and ADNOC had made their offer, valued at US$2bn, in March 2023, with the aim to form a joint venture that would give them access to gas areas in the Eastern Mediterranean and Israel’s energy sector.
The Israeli group said that there was no certainty that discussions would resume or that an agreement would be reached in the future. However, BP and ADNOC reiterated their interest in the transaction. The two oil and gas companies made a non-binding offer to take NewMed Energy private with BP and ADNOC holding 50% of the company as a result (a 45% stake would be acquired via the acquisition of free-floating shares while a 5% stake would be bought from the Israeli conglomerate Delek Group).