BP, a British multinational oil and gas company headquartered in London, England, and the state-owned Abu Dhabi National Oil Company (ADNOC) are set to establish a joint venture in Egypt, with an initial focus on natural gas production. The formation of this joint venture, slated for the second half of the current year, will see BP holding a 51% stake while ADNOC will have a 49% ownership.

Originally intended as the second phase of collaboration between the two entities in the Eastern Mediterranean, following plans for BP's acquisition of a 50% stake in Israeli gas producer NewMed, progress on the latter has been stalled. This delay is attributed in part to the Israel-Hamas conflict that erupted on October 7th.

ADNOC, being the United Arab Emirates' oil giant, aims to expand its gas business both domestically and internationally, considering natural gas as a transitional resource towards renewable energy sources. Meanwhile, BP, despite its ambition to reduce oil and gas production by 25% by 2030 compared to 2019 levels, remains committed to substantial investments in fossil fuels.

Under the terms of the joint venture, BP will contribute its interests in three development concessions and exploration agreements in Egypt, while ADNOC will make a corresponding cash contribution, earmarked for future growth prospects. Egypt, grappling with a prolonged economic crisis and a chronic shortage of foreign currency, has been engaged in discussions with the International Monetary Fund to bolster its financial stability.

The partnership between the UAE and Egypt has historically been robust, with the Gulf state providing direct capital injections and investments to support Cairo through previous financial challenges.

BP's assets in Shorouk, housing the substantial Zohr field, constitute a 10% ownership interest, while it fully owns North Damietta, inclusive of the Atoll field. Additionally, BP holds a 50% stake in North El Burg, featuring the undeveloped Satis field, with the remaining concessions representing exploration agreements.

This collaborative endeavor between BP and ADNOC is poised to bolster Egypt's energy security and unlock the economic potential of the region's most populous Arab nation, signaling a progressive step forward in the realm of energy cooperation.

BP p.l.c. offers a range of energy products and services to its clientele. Its business operations are divided into segments, namely gas & low carbon energy, oil production & operations, and customers & products. Within the gas & low carbon energy segment, BP encompasses its businesses focused on gas and low carbon initiatives.