BP and Abu Dhabi's Adnoc Form Gas Joint Venture to Focus on Egypt - Bloomberg
BP Plc and Abu Dhabi National Oil Co. agreed to form a joint venture in Egypt to focus on natural gas, giving the United Arab Emirates access to production in a country that supplies the fuel to Europe.
The move is the latest in Adnoc’s push for international growth, following a multibillion-dollar pursuit of Covestro AG, and the purchase of stakes in a gas field in Azerbaijan and a fertilizer company. It would also deepen Egypt’s economic ties with the UAE, which has been a key backer of President Abdel-Fattah El-Sisi.
BP will contribute its interests in three development concessions, as well as exploration projects in Egypt to the venture, according to a statement. Adnoc will provide cash to help fund future growth opportunities, the company said, without providing a value.
Gas transactions have been high on Adnoc’s list of priorities, as it seeks more production and targets a bigger trading business. Egypt supplies liquefied natural gas to Europe through export plants on the country’s Mediterranean coast. European producers like BP and Italy’s Eni SpA have been working in the country for decades to develop fields that can supply both domestic and export markets.
The venture “represents a significant step forward as Adnoc builds its international natural gas portfolio,” Musabbeh Al Kaabi, the company’s head of low-carbon solutions and international growth, said in the statement.
BP and Adnoc have also worked together on a deal for gas in the Mediterranean region earlier through a joint bid for an Israeli producer. That’s now on hold because of war in the region.
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