BP, ADNOC Place $4B Offer for 50% of Israel's NewMed Energy
The new joint venture will focus on gas development in international areas of mutual interest including the East Mediterranean
BP confirmed last week that, together with ADNOC, it has made a non-binding offer to take NewMed Energy private through an acquisition of the free float and a partial acquisition of Delek’s stake, which would result in BP and ADNOC holding 50% of NewMed Energy.
BP and ADNOC intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean.
When completed, this would strengthen the broader strategic partnership between ADNOC and BP across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship.
This proposed transaction is consistent with BP’s stated strategy and financial frame including current guidance for capital expenditure. The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership.