BP, ADNOC suspend $2-billion Israel deal

Israel

TEL AVIV, March 13, 2024 – A USD 2-billion offer from BP and ADNOC to purchase a 50% stake in NewMed Energy has been put on hold due to “uncertainty created in the external environment,” the Israeli gas producer said on Wednesday.

NewMed, the largest shareholder (45.34%) in the Leviathan gas mega-project, said the decision to pause negotiations was agreed on by all parties.

With an estimated 648.7 bcm (22.9 tcf) of recoverable gas reserves, the Chevron-operated Leviathan gasfield is the largest offshore gas asset in the Mediterranean.

BP and ADNOC announced the non-binding offer in March of last year, aiming to take the controlling share from NewMed’s parent company, Delek.

BP described the deal as a first step in its formation of a joint venture with ADNOC to pursue gas developments “in international areas of mutual interest including the East Mediterranean.”

In February, the two companies agreed to create an upstream joint venture in Egypt, a move marking the second phase of their partnership.

Wednesday’s news sent NewMed’s shares falling by around 8% on the Tel Aviv exchange. They later settled at a decrease of around 4%.

Image courtesy of NewMed.

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