Adnoc is increasing its interests in the Egyptian market, which is a natural gas powerhouse in the Eastern Mediterranean and Africa. In 2022, Egypt produced more than a quarter of all African production

Adnoc's joint venture with bp in Egypt further ratifies gas as a key component of the group’s growth strategy.

Last month, both companies agreed to combine their deep technical capabilities and proven track records to grow a highly competitive gas portfolio in the most populous Arab country.

This comes one year after Adnoc and bp began talks to acquire 50 per cent of NewMed Energy (formerly Delek Drilling).

According to the latest agreement, bp will have a 51 per cent stake and contribute its interests in three development concessions, as well as exploration agreements.

Meanwhile, Adnoc will own the remaining shares and make cash contributions to the partnership.

The JV is expected to be formally incorporated during H2 2024.

The concessions include Shorouk, which holds the Zohr field and where bp has a 10 per cent interest. It is operated by Belayim Petroleum (Petrobel).

In the North Damietta, operated by Pharaonic Petroleum Company (PhPC), bp has 100 per cent interest and it contains the producing Atoll field.

And in the North El Burg, operated by PhPC, bp has 50 per cent interest. It contains the undeveloped Satis field.

Also included in the agreement are the North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concessions.

Musabbeh Al Kaabi, Adnoc Executive Director for Low Carbon Solutions and International Growth, said the announcement with bp represented a significant step forward as Adnoc builds its international natural gas portfolio.

"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 long-standing strategic partnership with bp, Adnoc looks forward to continue exploring other opportunities as we collectively seek to decarbonise our operations and lead a just and equitable energy transition."

William Lin, bp’s Executive Vice-President of Regions, Corporates and Solutions, said: "This dynamic JV offers a platform for international growth that advances our longstanding and strategic partnership with Adnoc that spans over five decades. 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."

Adnoc is increasing its interests in the Egyptian market, which is seen as natural gas powerhouse in the Eastern Mediterranean and Africa.

In 2022, for example, Egypt produced about 64.5 billion cu m (bcm) of natural gas, which is more than a quarter of all African production.

Separately, Adnoc Distribution, a group company that markets and distributes fuels, continues to invest in Egypt.

The company currently has 244 service stations in the country and the second highest after the UAE, where it has 520 stations.

Bader Saeed Al Lamki, Adnoc Distribution CEO, expressed confidence in the market's potential for growth, considering factors such as population, infrastructure, and regulations.

"We do have an excellent track record in developing the fuel and non-fuel businesses, and we believe that this market has the ingredients and has the foundations to continue to grow, whether in the UAE or in Saudi Arabia or in Egypt, given the population, the infrastructure, the regulation," he told Egypt Today at the Egypt Energy Show (EGYPS) 2024

He said investment in Egypt was based on very strong fundamentals. "One, it is a highly populated country with youth that are demanding progress, demanding expansion, demanding energy. So the ability to grow is not only short-term but also long-term. The regulations are there. The Ministry of Petroleum, Engineer Tarek El-Molla, has set the right framework for investors to come here," he said.