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Adnoc and BP team up on new gas JV in Egypt: State-owned Abu Dhabi National Oil Company (Adnoc) and UK energy giant BP have agreed to form a joint venture that will target the development of natural gas assets in Egypt, according to an Adnoc statement. BP will bring the stakes it owns in three development concessions to the JV, as well as exploration concessions, while Adnoc will provide funds to support the venture’s expansion.
The concessions: The JV will see BP add its wholly-owned North Damietta concession, as well as its 50% share in North El Burg, and 10% share in Shorouk — which contains the Zohr field. BP will also add exploration concessions in North El Tabya, Bellatrix-Seti East and North El Fayrouz.
Fast fact: Zohr, the Mediterranean’s largest-ever gas find, accounts for some 38% of Egypt’s gas output. The discovery of the field in 2018 allowed the country to pull the plug on gas imports and turned it into a net natural gas exporter.
Ownership: BP will own 51% of the JV — which is expected to be formed during the second half of this year — while Adnoc will own the remainder.
Advisors: Egypt’s Matouk Bassiouny & Hennawy acted as Adnoc’s local counsel and Gibson Dunn & Crutcher acted as its international counsel, according to a statement (pdf). Norton Rose Fulbright was BP’s international legal representative and Al Kamel Law Firm served as its local counsel.
Timeline: The JV should be set up during 2H 2024, according to the statement.
