BP and ADNOC partner on upstream gas venture in Egypt

ADNOC and BP have agreed to create a new upstream joint venture in Egypt, the Emirati NOC announced on Wednesday.

The new joint venture will include BP’s 10% interest in the Shorouk block containing the prolific Zohr field that is currently operated by Belayim Petroleum Company, a joint venture between Eni and the Egyptian government.

It will also hold BP’s 100% interest in the North Damietta block containing the Atoll field that is operated by Pharaonic Petroleum Company, a joint venture between BP and Egyptian Natural Gas Holding Company.

Additionally, it will take on BP’s 50% interest in the North El Burg block containing the undeveloped Satis field that is also operated by Pharaonic Petroleum Company.

Finally, the new entity will manage the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

BP will have a 51% stake in the new company, with ADNOC taking the remaining 49%.

The deal is subject to regulatory approval and is expected to be formed in H2 2024.

“This dynamic joint venture offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades,” said William Lin, executive vice-president of regions, corporates and solutions of BP.