Wednesday 13 March 2024

Israel's NewMed says BP, ADNOC buy-in offer on hold | Reuters

Israel's NewMed says BP, ADNOC buy-in offer on hold | Reuters

A $2 billion offer by Abu Dhabi's national oil company and BP (BP.L), opens new tab to acquire a 50% stake in Israeli gas producer NewMed (NWMDp.TA), opens new tab has been put on hold due to uncertainty in the region, NewMed said on Wednesday.

NewMed said all parties agreed to pause negotiations, although Abu Dhabi National Oil Co (ADNOC) and BP have reaffirmed their interest in the deal.

BP and ADNOC made their offer a year ago, intending to form a joint venture that gives them access to gas-rich areas in the east Mediterranean and Israel's energy sector. Along the way, a panel reviewing the offer for NewMed recommended to raise the asking price by 10%, according to sources.

NewMed, in a regulatory filing in Tel Aviv, said that the panel, BP and ADNOC have agreed to put the deal on hold due to uncertainty in the "external environment", presumably referencing the war in Gaza, opens new tab and fighting on the Israel-Lebanon border.

"The process was suspended until the date that it will be renewed or the process is ended," NewMed said.

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