The two entities intend to form a new joint venture that will focus on gas development in international areas of mutual interest
Global energy company bp has confirmed in a statement that, together with Abu Dhabi National Oil Company (ADNOC), it has made a non-binding offer to take NewMed Energy private through an acquisition of the free float and a partial acquisition of Delek’s stake, which would result in bp and ADNOC holding 50 per cent of NewMed Energy.
According to the release, bp and ADNOC intend to form a new joint venture that will be focused on gas development in international areas of mutual interest, including the East Mediterranean.
This proposed transaction with NewMed Energy would be a significant first step in establishing this dynamic joint venture together with ADNOC.
Adnoc-bp: Building a stronger partnership
When completed, this would strengthen the broader strategic partnership between ADNOC and bp across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship.
This proposed transaction is consistent with bp’s stated strategy and financial frame including current guidance for capital expenditure.
The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership.
ADNOC and bp will update the market on the proposed transaction as appropriate, according to the release.
In May last year, Abu Dhabi National Oil Company (ADNOC), BP and Masdar signed a partnership agreement to progress their new energy partnership through the development of clean hydrogen and technology hubs.
Read: Abu Dhabi’s ADNOC, Masdar deepen partnership with BP
In other news, Masdar, ADNOC, bp, Tadweer (Abu Dhabi Waste Management Company) and Etihad Airways will carry out a joint feasibility study exploring the production of sustainable aviation fuel (SAF) and other products, such as renewable diesel and naphtha, using municipal solid waste (MSW) and renewable hydrogen.
The announcement was made at the Abu Dhabi Sustainability Week, which concluded on January 19.
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