Offshore staff
JERUSALEM – A $2 billion offer by Abu Dhabi’s national oil company ADNOC and bp to buy a 50% stake in Israeli gas producer NewMed has been put on hold due to uncertainty in the region, NewMed has reported.
NewMed said all parties had agreed to pause negotiations, although ADNOC and bp have reaffirmed their interest in the deal, according to a Reuters report.
bp and ADNOC made their offer a year ago with an aim to form a joint venture that would give them access to gas-rich areas in the Eastern Mediterranean and Israel’s energy sector.
Along the way, a panel reviewing the offer for NewMed recommended raising the asking price by 10%, according to sources.
NewMed said in a regulatory filing that the panel, bp and ADNOC had agreed to put the deal on hold due to uncertainty in the “external environment,” presumably referring to the war in Gaza and fighting on the Israel-Lebanon border.
“The process was suspended until the date that it will be renewed or the process is ended,” the Israeli firm said.
NewMed is the largest stakeholder in the Leviathan offshore field, operated by Chevron, which exports gas to Egypt and Jordan.
"The regional conditions and geopolitical issues have made it difficult. Once things calm down, we hope to return to the process and complete it successfully,” said a source close to the deal, as reported by Reuters.
03.14.2024
