BP (BP.L) is contemplating a substantial investment of approximately $1.5 billion for the development of gas projects and drilling initiatives in Egypt over the next three to four years, according to a spokesperson for the global oil major cited by Bloomberg News on Wednesday.
The company, as of the time of reporting, had not responded to a Reuters request for comment regarding this potential investment.
This development follows BP’s recent announcement of plans to establish a joint venture with the state-owned Abu Dhabi National Oil Company (ADNOC) in Egypt. The joint venture, set to materialize in the second half of the year, will see BP holding a 51% stake, while ADNOC will own the remaining 49%. The primary focus of the collaboration will be on natural gas initiatives.
As part of the joint venture, BP will contribute its interests in three development concessions and exploration agreements in Egypt. In return, ADNOC will provide a proportionate cash contribution, earmarked for future growth opportunities.
BP’s proposed investment aligns with its strategic focus on expanding its footprint in Egypt’s energy sector, signaling a commitment to advancing gas projects and drilling activities in the region. The potential $1.5 billion investment underscores the company’s confidence in the long-term prospects and viability of the Egyptian energy market.
