BP and ADNOC have engaged in discussions with officials from the Cypriot Energy Ministry to consider investments in Cyprus’ burgeoning natural gas sector, reported Reuters, citing sources.
This move comes as part of a broader interest in the East Mediterranean region’s energy resources, heightened by recent disruptions in Russian gas supplies.
Following significant gas finds in neighbouring countries such as Israel and Egypt, the East Mediterranean has seen a surge in activity.
Cyprus has granted exploration licences for ten of its 13 offshore blocks since 2007, with gas discoveries in five wells across three blocks.
However, these finds have not yet been developed for commercial production.
During the meeting, the potential for collaboration within Cyprus’ Exclusive Economic Zone (EEZ) was a key topic, the source said.
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By GlobalDataEarlier this year, bp and ADNOC announced plans to set up a joint venture (JV) to develop new gas resources in the East Mediterranean, with bp holding a 51% stake and ADNOC 49%.
The JV initially includes bp’s interests in three development concessions and several exploration agreements in Egypt.
ADNOC will contribute to the JV through a cash investment intended to support future growth initiatives.
The JV encompasses concessions such as Bellatrix-Seti East and North El Tabya, among others.
Earlier attempts by bp and ADNOC to expand their presence in the region included a proposed $2bn acquisition of a 50% stake in Israeli gas producer NewMed.
However, this proposal was paused due to regional uncertainties.
NewMed holds a 45.3% stake in Israel’s Leviathan gas field, with Ratio and Chevron owning the remainder.
Last month, bp agreed to acquire a 10% interest in the Ruwais LNG project in Abu Dhabi, which is poised to become the first LNG export facility in the Middle East and North Africa to use clean power.
