BP, ADNOC to jointly acquire 50% stake in NewMed Energy

29 March 2023

The consortium (BP and ADNOC) will purchase all the issued capital held by the public (about 45%) and about 5% of issued capital from Delek, where the consortium and Delek both will hold 50% equity and controlling stake each, upon closing. BP and Abu Dhabi’s state-owned oil company ADNOC have made an offer to jointly purchase a 50% of NewMed Energy for around $2bn.

BP, ADNOC to jointly bid for stake in NewMed. (Credit: Ben Wicks on Unsplash)

Owned is Delek Group, NewMed Energy is an Israel-based company focused on the exploration, development, and production of offshore natural gas and oil.

Under the terms of the transaction, the consortium (BP and ADNOC) will purchase all the issued capital held by the public (about 45%) and about 5% of issued capital from Delek.

The consortium intends to form a joint venture (JV) that will be focused on gas development in global territories of mutual interest, including the East Mediterranean.         

The consortium and Delek will hold 50% equity and a controlling stake each, upon closing.

The offer includes terms and conditions that allow the consortium to negotiate with Delek Group, related to the joint control of the partnership after the closing.

The additional terms and conditions include completion of due diligence, detailed agreements with Delek Group on relevant issues, and obtaining required consents and approvals.

NewMed Energy CEO Yossi Abu said: “Leviathan and build a floating liquefaction facility, which will allow Israeli gas to reach every corner of the globe within a few years.

“After the natural gas revolution brought economic stability to energy prices in the domestic market and contributed to the stability and fabric of Israel’s relations with its neighbours, our next goal is to increase production volumes and export Israeli gas to Europe and the Far East.”

BP said that the strategic partnership with ADNOC would deepen their long-standing relationship across oil and gas, hydrogen and carbon capture and storage technology.

Also, the proposed transaction is in line with BP’s strategy and financial frame, including current guidance for capital expenditure.

Last month, NewMed and UK-based Capricorn Energy, formerly known as Cairn Energy, terminated their previously announced merger, following board changes.

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