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Camilla Canocchi writes for Thisismoney.co.uk and Reuters
March 28, 2023 12:21, updated March 28, 2023 12:21
- Deal would mark BP’s entry into Israel’s energy sector if successful
- BP, ADNOC to form new joint venture
- BP says acquisition of NewMed ‘aligned’ with strategy
BP and Abu Dhabi’s state oil major have made a non-binding offer to buy a 50% stake in Israeli offshore gas producer NewMed Energy for around $2bn (£1.6bn).
If the deal goes through, it would mark BP’s entry into Israel’s growing energy sector, at a time when Oil majors are walking back on their climate pledges Focus on the development of natural gas production.
BP and Abu Dhabi National Oil Company (Adnoc) said that as part of the deal they intend to form a new joint venture that will take NewMed Energy private.
“When complete, this will strengthen Adnoc and BP’s broader strategic partnership in oil and gas, hydrogen and carbon capture and storage technologies and will deepen the partners’ long-standing relationship,” BP said.
NewMed is the largest shareholder in the massive Leviathan offshore field operated by Chevron, which produces 12 billion cubic meters of natural gas for Israel, Egypt and Jordan.
Earlier this year, Capricorn Energy Tries to Merge with NewMedbut ultimately called off the deal in February after facing opposition from activist investor Palliser Capital and some of the company’s largest shareholders.
BP said the bid for NewMed was “aligned” with its strategy and “financial framework including current capital expenditure guidance”.
It added that the two companies intend to explore a range of mechanisms to form and further expand new partnerships.
In February, BP announced it would scale back its climate change plans after posting record profits amid soaring energy prices.
In an apparent U-turn, the energy company’s chief executive, Bernard Looney, said he planned to cut oil and gas production by 25% between 2019 and 2030, well below the more ambitious 40% cut he had previously set. % The goal.
The move sparked outrage from climate change campaigners, with BP reporting a profit of £23bn in 2022 – the highest level in its 114-year history.
BP It was up 1.7 percent at 505 pence in afternoon trade on Tuesday. They have soared by about a third in the last year.
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