Adnoc and BP have agreed to form a joint venture in Egypt, focused on three BP licences in the country, including its stake in the major Zohr field.
Adnoc will pay in cash to fund future growth, it said. BP is to hold a 51% stake in the venture, while Adnoc has 49%. The venture should be incorporated during the second half of 2024.
“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.
The joint venture “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 decarbonise our operations and lead a just and equitable energy transition.”
Gas plans
BP is providing significant assets to the plan. These include its 10% stake in the Shorouk licence, which holds the Zohr field. Zohr accounts for around one third of Egypt’s gas output.
Other assets BP is chipping in to the venture are its 100% stake in North Damietta, home of the producing Atoll field; its 50% stake in North El Burg, which has the discovered Satis field. It will also provide three exploration concessions: North El Tabya, Bellatrix-Seti East and North El Fayrouz.
BP won the exploration licences in 2022. Bellatrix-Seti East is west of the Atoll field and North El Tabya. The licences are close to Chevron’s Nargis-1 discovery, from January 2023.
BP executive vice president William Lin said the “dynamic” joint venture would provide a “platform for international growth”. This, he said, would advance “our longstanding and strategic partnership with Adnoc that spans over five decades”.
BP has been reducing its presence in Africa in recent times. It launched the Azule Energy venture in 2022 with Eni, shifting its assets into the shared unit. It continues to have growth plans for Egypt, though, with BP executives setting out plans to spend $3.5bn over three years.
Adnoc, meanwhile, is eager to expand its international gas capacity. The Abu Dhabi-backed company bought a 30% stake in Azerbaijan’s Absheron field in 2023. It is also working on a deal offshore Israel with BP.
Recommended for you
