BP, ADNOC’s $2bln Bid for NewMed Energy Remains on Track
BP and Abu Dhabi National Oil Co (ADNOC) announced that their bid to acquire a 50% stake in Israeli gas producer NewMed Energy for $2 billion is still on track.
Under the non-binding offer, made last March, BP and ADNOC would buy 45% of NewMed’s free floating shares and an additional 5% owned by Israeli conglomerate Delek Group (DLEKG.TA), which will hold the remaining 50%, taking the company private.
In September, the deal faced uncertainty when an independent panel appointed by NewMed recommended raising the asking price by more than 10%.
However, BP remained “very optimistic” about the deal despite the recent geopolitical events as Anja-Isabel Dotzenrath, BP’s head of gas and low carbon energy told investors at a BP strategy day in Denver, Colorado on Tuesday.
“Despite the recent geopolitical events and the request for a higher price from the panel reviewing the proposed acquisition price, BP continues to highlight the Newmed deal as an example of innovative upstream partnership and confirms the attractiveness of the assets and the broader region,” analyst Giacomo Romeo said in a note after the meeting.
A source close to ADNOC said the company “remained committed to the deal and continues to see value in it.”
NewMed Energy is the largest shareholder in Israel’s Leviathan offshore gas field, holding a 45.3% stake. Chevron, the operator of the field, holds a 39.7% stake, while Ratio holds the remaining 15%.
bp and ADNOC intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean. This proposed transaction with NewMed Energy would be a significant first step in establishing this dynamic joint venture together with ADNOC according to BP press release.
When completed, this would strengthen the broader strategic partnership between ADNOC and bp across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship.
