BP plans assets transfer into new venture with Adnoc

BP is planning to transfer assets into a new joint venture with the Abu Dhabi National Oil Company (Adnoc), which will focus on developing new gas resources in the East Mediterranean, said chief financial officer Murray Auchincloss.

“BP expects to contribute assets to form the joint venture,” he told Reuters without providing details or costs.

In March, BP and Adnoc said they intended to form a $2 billion joint venture focused on gas development in international areas of mutual interest, including the East Mediterranean.

BP said the proposed transaction with NewMed Energy would be a “significant first step”, adding that once completed it would “strengthen the broader strategic partnership between Adnoc and BP across oil and gas, hydrogen and carbon capture and storage technology”.

NewMed Energy, which initiated the natural gas sector in Israel, made history with its agreements with Egypt, Jordan and the UAE, strengthening peace and increasing stability in the Middle East.

The company, part of the Delek Group, holds 45.34 percent of the Leviathan Reservoir, the largest gas reservoir in the Mediterranean, serving as a key energy source for Israel and neighbouring countries.

The NewMed Energy offer builds on the relationship between BP and Adnoc. Last year Adnoc announced it will take a 25 percent stake in the design stage of BP’s blue hydrogen project, H2Teesside, in the north-east of England.

H2Teesside is expected to kickstart the UK’s hydrogen economy at scale by developing two 500mw hydrogen production units by 2030. The project aims to start operations in 2027.

In addition, BP will join Adnoc to evaluate a new blue hydrogen project in Abu Dhabi, conducting a joint feasibility study.