ADNOC and bp have just announced that they have agreed to form a new joint venture (JV) for developing natural gas facilities in Egypt.

The JV (51% bp and 49% ADNOC) will combine the pair’s deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio.

As part of the agreement, bp will contribute its interests in three development concessions, as well as exploration agreements, in Egypt to the new JV. While, ADNOC will make a proportionate cash contribution which can be used for future growth opportunities.

Commenting on the transaction, Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “Today’s announcement with bp represents a significant step forward as ADNOC builds its international natural gas portfolio. This progressive 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.”

For his part, bp’s William Lin, Executive Vice President of Regions, Corporates & Solutions, said: “This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades. Together, 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.”

According to ADNOC’s statement,  the concessions that will be included in the JV:
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;
North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

The establishment of the JV is expected to complete during Q2 of 2024. It is subject to regulatory approvals and clearances.