Energy giant BP has made an arrangement with Abu Dhabi National Oil Company (Adnoc), the state-owned oil company of the UAE, to create a joint venture for the development of large gas fields in Egypt.
BP will hold a 51% stake in the joint venture, while Adnoc will hold the remaining 49%.
BP will transfer its interests and exploration rights for three gas fields to the venture, while Adnoc will inject cash into it when it is established later this year.
BP’s objective here is to raise funds that will enable it to expand its presence in the Middle East.
BP’s William Lin said about the deal:
“Our longstanding and strategic partnership with Adnoc spans over five decades. 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.”
BP, which also makes the Castrol metalworking and lubricant range, already has a number of partnerships with Adnoc, such as collaborating on a bid to buy half of NewMed, a gas company in Israel. Adnoc is also investing in BP’s Teesside project to produce hydrogen.
Among the assets to be transferred to the joint venture is BP’s interest in the Zohr gas field offshore of Port Said. The gas reserves there are estimated at 30 trillion cubic feet, making it the largest known field in the Mediterranean waters.
