CAIRO - 14 February 2024: Abu Dhabi National Oil Company (ADNOC) and BP to establish a joint venture (JV) aimed at harnessing gas assets in Egypt. Under the JV, BP will hold a majority stake of 51% in the JV, while ADNOC will possess the remaining 49%. The completion of the JV is anticipated to take place in the second half of 2024, pending regulatory approvals.
BP will contribute its interests in three development concessions, along with exploration agreements, while ADNOC will make a cash contribution to support the JV's growth without disclosing the exact value of ADNOC's cash contribution.
The concessions that will be integrated into the joint venture include Shorouk, operated by Belayim Petroleum, as well as North Damietta and North El Burg, both operated by Pharaonic Petroleum Company (PhPC). Additionally, the JV will also include the exploration concession agreements for North El Tabya, Bellatrix-Seti East, and North El Fayrouz. These assets represent a valuable resource base, positioning the joint venture for long-term success in the Egyptian gas market.
Egypt, a prominent supplier of liquefied natural gas (LNG) to Europe, has strategically redirected a significant portion of its LNG exports towards the European market. This shift in focus comes in response to Europe's efforts to reduce its reliance on Russian pipeline gas, following the Ukraine conflict. In 2022, Egypt's LNG exports to Europe accounted for a staggering 80% of the total volume, solidifying its position as a key player in the European energy landscape.
Comments
Leave a Comment