ADNOC and BP are forming an Egyptian joint venture that will combine several development concessions in an effort to boost natural gas production from the region.
The venture will carry a 51% BP and 49% ADNOC ownership structure and include interests in three BP development concessions, as well as exploration agreements, while ADNOC will make a proportionate but unspecified cash contribution which can be used for future growth opportunities.
“Today’s announcement with BP represents a significant step forward as ADNOC builds its international natural gas portfolio,” said Musabbeh Al Kaabi, ADNOC executive director for low-carbon solutions and international growth. “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 longstanding strategic partnership with BP, ADNOC looks forward to continuing exploring other opportunities as we collectively seek to decarbonize our operations and lead a just and equitable energy transition.”
Concessions included in the new joint venture are:
- 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 Co. (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
Zohr was discovered by Eni in August 2015 and is estimated to hold up to 30 Tcf of gas reserves in place. During 2022, the field produced an average of 2.4 Bcf/D of natural gas plus around 3,700 B/D of condensate.
The Atoll field was discovered by BP in March 2015 and was estimated to hold 1.5 Tcf of gas and 31 million bbl of condensate in its main reservoir. Today, the field produces around 300 MMcf/D of of natural gas.
“This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with ADNOC that spans over 5 decades,” said William Lin, BP’s executive vice president of regions, corporates, and solutions. “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.”
The joint venture agreement is subject to regulatory approvals and clearances and is expected to complete during the second half of 2024.
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 has been active as an oil and gas operator in Egypt for almost 60 years, investing more than $35 billion over that period.
