British energy company BP and Abu Dhabi (UAE) oil and gas company ADNOC have agreed to establish a joint venture (JV) in Egypt, their joint release said.
“ADNOC and BP today announce that they have agreed to establish a new joint venture (JV) in Egypt,” the statement said. Initially, the joint venture, in which BP will own 51% and ADNOC will own 49%, will focus on developing gas assets in Egypt, the release noted.
As part of the agreement, BP will transfer its interests in three development concessions, as well as exploration agreements, in Egypt to the JV, and ADNOC will make a matching cash contribution that can be used for future growth opportunities, it said.
Interests in the JV concessions include BP’s 10% stake in Shorouk, BP’s 100% stake in North Damietta, BP’s 50% stake in North El Burg, as well as exploration concession agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz, the companies note.
The creation of the joint venture is planned to be completed in the second half of this year, subject to receipt of the necessary approvals and permits, the companies note.
British BP is one of the six largest oil and gas corporations in the world. Founded in 1909. ADNOC was founded in 1971 and is wholly owned by the government of the capital emirate of the UAE.
