BP intends to invest USD1.5B in gas, drilling projects in Egypt

(MENAFN) BP, the international oil giant, is contemplating a substantial investment of approximately USD1.5 billion towards the development of gas and drilling ventures in Egypt. As per a Bloomberg News report, citing a company spokesperson, these projects are slated to unfold over the span of the next three to four years, signaling BP's commitment to expanding its presence and operations in the region.

In a strategic move unveiled in mid-February, ADNOC and BP disclosed their collaborative endeavor to establish a new joint gas project in Egypt. Under this arrangement, ADNOC is set to hold a 49 percent stake, while BP will possess a majority 51 percent stake, with the overarching goal of fostering a competitive business portfolio within the gas sector.

According to the terms of the agreement, BP is poised to contribute its assets from three development concessions, alongside exploration agreements in Egypt, to the newly formed joint venture. In return, ADNOC will furnish a proportional cash injection, earmarked for potential future growth opportunities, as outlined in a statement issued by ADNOC.

The establishment of this combined joint venture is slated for completion during the latter half of 2024, contingent upon securing requisite regulatory approvals. This strategic collaboration underscores the mutual commitment of both entities towards harnessing synergies and leveraging their respective expertise to drive sustainable growth and development in Egypt's energy landscape.


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