BP and Adnoc agree Egyptian joint venture

14th Feb 2024 10:27

(Sharecast News) - BP has agreed a new joint venture in Egypt with long-standing partner Adnoc, it was confirmed on Wednesday.

Under the deal, BP will contribute its gas interests in three development concessions in the country, as well as exploration agreements. The Abu Dhabi-based firm will make a "proportionate" cash contribution, which will be used for future growth opportunities.

Once complete, BP will own 51% and Adnoc, which is wholly owned by Emirate of Abu Dhabi, will control the remaining 49%.

William Lin, executive vice president of regions, corporates and solutions at BP, 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."

Musabbeh Al Kaabi, executive director at Adnoc, said the deal was a "significant step forward" in building the firm's international natural gas portfolio.

He continued: "This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region's most populous Arab country."

The formation of the joint venture, which is subject to regulatory approval, is expected to complete in the second half of 2024. Financial details were not disclosed.

As at 1015 GMT, shares in BP were unchanged at 480p.