BP strikes deal with Abu Dhabi oil giant in Middle East expansion

BP HAS struck a deal with the UAE’S state-owned oil company as the British energy giant deepens ties to the Middle East.

BP is to form a joint venture with the Abu Dhabi National Oil Company (Adnoc) focused on production from two massive Egyptian gas fields. Under the deal, BP will transfer interests in three gas fields to the joint venture as well as exploration rights.

Adnoc will put cash into the joint venture, which will be formed in the second half of this year. A key aim is to raise funds for BP to further expand in the Middle East. Adnoc is run by Dr

Sultan Ahmed al-jaber, the UAE’S energy minister, who last year chaired the Cop28 climate summit. Critics said it was inappropriate for a fossil fuel executive to be overseeing the talks.

The BBC claimed the UAE planned to use the UN gathering to discuss oil and gas deals, an allegation Dr Jaber said was “false, not true, incorrect and not accurate”. Dr Jabar is also the chairman of UAE media company IMI, which is providing the bulk of the funding for a £1.2bn takeover bid for The Telegraph.

The UAE’S involvement, through joint venture Redbird IMI, has triggered several government investigations amid concerns about state interference and press freedom. The new energy joint venture will be 51pc owned by BP and 49pc by Adnoc.

BP and Adnoc have worked together in the region for decades, while Adnoc is also supporting BP’S hydrogen production project in Teesside.

Last year BP and Adnoc teamed up on a $2bn joint bid to buy 50pc of Israeli gas company Newmed. Adnoc is the world’s 12th largest oil company in terms of production.

BP concessions to the joint venture include stakes in the Atoll and Zohr gas fields. Zohr is the Mediterranean’s largest offshore field with 30trillion cubic feet of gas reserves. The main reservoir in the Atoll field has 1.5trillion cubic feet of gas.