ADNOC and bp have agreed to form a new joint venture (JV) in Egypt. The JV (51% bp and 49% ADNOC) will combine the pair’s deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio.

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. ADNOC will make a proportionate cash contribution which can be used for future growth opportunities.

Musabbeh Al Kaabi, ADNOC executive director for low carbon solutions and international growth, said: 
“Today’s announcement with bp represents a significant step forward as ADNOC builds its international natural gas portfolio. This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country. Building on our long-standing strategic partnership with bp, ADNOC looks forward to continue exploring other opportunities as we collectively seek to decarbonize our operations and lead a just and equitable energy transition.”

William Lin, bp’s executive vice president of regions, corporates & solutions, said: 
“This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over five decades. Together, we will build on the 60 years of safe and efficient operations of bp and its partners in Egypt, and continue to produce and deliver secure, lower-carbon energy in the form of natural gas to the country.”

Concessions to be included in the JV:

• Shorouk (bp 10% interest, contains the producing Zohr field) operated by Belayim Petroleum (Petrobel)
• North Damietta (bp 100% interest, contains the producing Atoll field) operated by Pharaonic Petroleum Company (PhPC)
• North El Burg (bp 50% interest, contains the undeveloped Satis field) operated by PhPC
• North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements. 

Subject to regulatory approvals and clearances, the formation of the incorporated JV is expected to complete during the second half of 2024.

Background

• ADNOC and bp have a long-standing relationship of over 50 years. The JV further strengthens the broader strategic partnership across energy, renewables and carbon capture and storage technology, in addition to the pair’s relationship at ADNOC’s onshore concession in Abu Dhabi.
• ADNOC and bp are founding members of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the energy industry.
• 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.

bp in Egypt

• bp has a long and successful track record in Egypt, stretching back almost 60 years with investments totalling over $35 billion.
• bp operates the major West Nile Delta (WND) gas development which currently produces around 900 million cubic feet per day (mmcfd) of gas and 27 thousand barrels per day (mbd) of condensate. The development includes five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks in the Mediterranean Sea.
• bp has a strong presence in the East Nile Delta through its Pharaonic Petroleum Company (PhPC) joint venture and other partners’ operated assets. PhPC is a major gas producer with current average production of around 450 mmcfd of gas as well as around 10 thousand barrel per day of condensate. Together with our partners, bp currently produces around 70% of Egypt’s gas.
• In early 2017, bp acquired a 10% stake in the Shorouk Concession from Eni, which contains the Zohr gas field.
• bp is a 33% shareholder of the UGDC, a natural gas liquids (NGL) plant extracting LPG and propane, in partnership with Eni/IEOC and GASCO (the Egyptian midstream gas distribution company).
• bp is also present in Egypt’s customers and products sector through a 40% interest in the NGVC. Established in September 1995, NGVC was the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles.

KeyFacts Energy: bp Egypt country profile   l   ADNOC Egypt country profile