The JV, with BP holding a 51 percent stake and ADNOC owning the remaining 49 percent, will combine the deep technical capabilities and proven track records of both to grow a highly competitive gas portfolio in Egypt.

According to the agreement, BP will contribute its assets to the joint venture in three development concessions and exploration agreements in Egypt.

ADNOC also will provide a proportionate cash contribution to be used for future growth initiatives.

The JV formation is expected to be completed in the second half of 2024.

Musabbeh Al-Kaabi, ADNOC's executive director of Low Carbon Solutions & International Growth, emphasized the importance of this venture in bolstering Egypt's energy security and economic potential. He also underlined the commitment to decarbonize operations in line with global sustainability goals.

William Lin, BP's executive vice president of Regions, Corporates & Solutions, echoed similar sentiments. “This dynamic JV offers a platform for international growth which advances our longstanding and strategic partnership with ADNOC that spans over five decades,” he said.

The concessions included in the joint venture are Shorouk, North Damietta, North El-Burg, and North El-Tabya fields.

Egypt's self-sufficiency & gas exports
 

Egypt has planned to use its position on Europe’s doorstep to become a major supplier of liquefied natural gas (LNG) to the continent after achieving self-sufficiency in natural gas in 2018.

In 2022, Egypt, Israel, and the EU signed an initial agreement, by which Egypt would liquefy Israeli natural gas and export it to the European market.

Egypt’s exports of natural gas and liquefied natural gas (LNG) skyrocketed by 152.7 percent to $9.9 billion in 2022, compared to $3.9 billion in 2021, as noted in CAPMAS' annual foreign trade bulletin.

The country’s energy reserves were significantly impacted by Israel's war on Gaza, resulting in the cessation of gas supplies from Israel.

In mid-2022, Egypt sought an average of 15 percent savings in natural gas pumped yearly into power stations nationwide to be redirected for export. This aimed to bring in more foreign currency amid the spike in the oil and basic goods prices, said Prime Minister Mostafa Madbouly.

Saving 10 percent of the natural gas pumped into power stations and redirecting it for export will bring in approximately $300 million monthly. Similarly, saving 15 percent will bring in $450 million monthly, Madbouly added at the time.

Since 2023’s summer, Egypt has been applying scheduled nationwide power cuts to reduce electricity load amid increased consumption.