Egypt: ADNOC and BP to form gas joint venture.

BP and Abu Dhabi National Oil Company (ADNOC) have reached an agreement to form a new joint venture (JV) that will initially focus on the development of gas interests in Egypt .

The JV (51% BP and 49% ADNOC) will combine the couple's in-depth technical capabilities and proven track record to develop a highly competitive gas portfolio.

Under the agreement, BP will contribute its interests in three development concessions and exploration agreements in Egypt to the new joint venture.

ADNOC will make a proportional cash contribution that can be used for future growth opportunities.    

BP will transfer its interests to the Shorouk JV (BP 10%, 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), and North El Burg (BP 50% interest, contains the undeveloped Satis field) operated by PhPC, as well as exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.

Together with its partners, BP currently produces around 70% of Egypt's gas from its gas development projects in the western and eastern Nile deltas.

 "Today's announcement with BP represents a significant step forward as ADNOC builds its international natural gas portfolio. This progressive joint venture partnership will strengthen Egypt's energy security and the economic potential of the region's most populous Arab country," said Musabbeh Al Kaabi, ADNOC's Executive Director for Low Carbon Solutions and International Growth.

 "This dynamic JV provides a platform for international growth that advances our long-standing strategic partnership with ADNOC that spans more than five decades. Together, we will build on BP and its partners' 60 years of safe and efficient operations in Egypt, and continue to produce and supply the country with safe, low-carbon energy in the form of natural gas," added William Lin, BP. Executive Vice President, Regions, Businesses and Solutions.