ADNOC’s contribution to the new JV will be a cash investment. Credit: ADNOC.

ADNOC and BP have announced plans to establish a new JV in Egypt, marking a significant step in the development of the country’s gas assets.

The JV, which will be 51% owned by bp and 49% by ADNOC, will leverage the companies’ extensive technical expertise.

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Initially, the JV will encompass bp’s interests in three development concessions and several exploration agreements within Egypt.

ADNOC’s contribution to the JV will be a cash investment, which will support future growth initiatives.

ADNOC low carbon solutions and international growth executive director Musabbeh Al Kaabi 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.”

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Included in the JV are concessions such as Bellatrix-Seti East, North Damietta, North El Burg, North El Fayrouz, North El Tabya and Shorouk.

BP owns a 10% stake in the Shorouk concession, which contains the Zohr field; a 100% stake in North Damietta; and a 50% interest in the North El Burg concession.

Additionally, the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concessions will be part of the agreement.

Completion of the JV is subject to regulatory approvals and is expected to occur in the second half of 2024.

bp regions, corporates & solutions executive vice-president William Lin said: “This dynamic JV offers a platform for international growth that advances our long-standing 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.”

The new venture is an extension of the two companies’ collaboration in the Eastern Mediterranean, following the planned but currently stalled acquisition of a 50% stake in Israeli gas producer NewMed, reported Reuters.

Last week, bp CEO Murray Auchincloss confirmed to Reuters that discussions regarding the NewMed deal are still active.