bp and ADNOC agreed to form a joint venture aimed at growing natural gas opportunities in Egypt.
As part of the agreement, bp will contribute its interests in three development concessions, as well as exploration agreements, in Egypt to the new JV. Specifically, bp will contribute its 10% interest in Belayim Petroleum (Petrobel)-operated Shorouk, which contains the producing Zohr field); its 10% interest in Pharaonic Petroleum Co. (PhPC)-operated North Damietta, which contains the producing Atoll field; its 50% interest in PhPC-operated North El Burg, which contains the undeveloped Satis field; as well as North El Tabya, Bellatrix-Seti East, and North El Fayrouz exploration concession agreements.
ADNOC will make a proportionate cash contribution which can be used for future growth opportunities.
The JV will be held 51% by bp and 49% by ADNOC.
Subject to regulatory approvals and clearances, the formation of the incorporated JV is expected to be completed during second-half 2024.
Together with its partners, bp currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.
