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DUBAI: Global oil major BP and state-owned Abu Dhabi National Oil Company will form a joint venture in Egypt that will initially focus on natural gas, they said on Wednesday.

The joint venture, expected to be formed in the second half of this year, will be 51% owned by BP and 49% by ADNOC, the companies said.

BP will contribute its interests in three development concessions and exploration agreements in Egypt while ADNOC will make a proportionate cash contribution that can be used for future growth opportunities, they said.

UAE’s ADNOC sells more fuel oil from Ruwais refinery in January

The joint venture’s concessions include Shorouk, North Damietta, North El Burg, North El Tabya, Bellatrix-Seti East and North El Fayrouz.

“This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region’s most populous Arab country,” Musabbeh Al Kaabi, ADNOC’s executive director for low-carbon solutions and international growth, said in the joint statement.

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