UAE's Abu Dhabi National Oil Company ADNOC and BP have on Wednesday announced an agreement to form a new joint venture in Egypt. The new JV will combine the two companies' deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio. As part of the agreement, BP – which will hold a 51 per cent share in the JV – shall contribute its interests in three development concessions, as well as exploration agreements, in Egypt to the new joint venture. Meanwhile, ADNOC – which will own a 49 per cent share – shall make a proportionate cash contribution which can be used for future growth opportunities. The concessions to be included in the new JV are; * Shorouk (BP 10 per cent interest, contains the producing Zohr field) operated by Belayim Petroleum (Petrobel) * North Damietta (BP 100 per cent interest, contains the producing Atoll field) operated by Pharaonic Petroleum Company (PhPC) * North El Burg (BP 50 per cent interest, contains the undeveloped Satis field) operated by PhPC * North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements. The formation of the incorporated JV is subject to regulatory approvals and clearances, and it is expected to complete during the second half of 2024. Dynamic Joint Venture "This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region's most populous Arab country." Musabbeh Al Kaabi, ADNOC executive director for low carbon solutions and international growth, said. William Lin, BP's executive vice president of regions, corporates & solutions, for his part, said the new "dynamic" joint venture offers a platform for international growth, building on the 60 years of safe and efficient operations of BP and its partners in Egypt. BP will continue to "produce and deliver secure, lower-carbon energy in the form of natural gas to the country." Lin added. Together with its partners, BP currently produces around 70 per cent of Egypt's natural gas through its gas development projects in the West and East Nile Delta.
