BP & Adnoc’s Landmark NewMed Deal: Testing the Water or Troubled Waters?

9 Jun 2023 Issue: 66 / 23 By: Peter Stevenson

BP and Adnoc’s proposed acquisition of 50% of Israel’s NewMed grabbed the headlines when it was announced two months ago. While some may argue progress has been slow, the firms appear to be taking a cautious approach.

Two months have elapsed since UK major BP and Abu Dhabi state giant Adnoc submitted a non-binding offer to acquire 50% of key Israeli upstream player NewMed Energy in a deal valued at around $2bn (MEES, 31 March). NewMed has two assets, both in the East Mediterranean: a majority 45.34% stake at Israel’s key 23tcf Leviathan field and 30% of Cyprus’ 4.5tcf Aphrodite. Both are operated by US major Chevron.

While Leviathan goes from strength to strength with plans to expand capacity from 1.2bn cfd to 2.1bn cfd set to be finalized by end-2023 and FLNG a leading option, Aphrodite has remained undeveloped since its 2011 discovery. That could change with Chevron (35%op), Shell (35%) and NewMed submitting an updated field development plan to Nicosia on 31 May, although first gas is unlikely before 2028 (MEES, 2 June). (CONTINUED - 2044 WORDS)