BP, ADNOC Cease Deal to Acquire Stake in NewMed

SEATTLE (Oil Monster): Israel-based NewMed Energy announced that the $2 billion bid by BP Plc and Abu Dhabi National Oil Company (ADNOC) towards acquisition of 50% stake in the company has been put on hold due to “uncertainty created by the external environment”.

In a statement issued yesterday, NewMed noted that all parties have agreed to suspend discussions. The process will remain suspended until such time as discussions resume or the process is terminated, it said. Meantime, BP and ADNOC have reiterated their interest in the proposed transaction, although both the companies declined to comment beyond the statement issued by NewMed.

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The offer made in March last year was to jointly acquire 45% of free floating share of the Israeli offshore natural gas producer and an additional 5% owned by Israel-based Delek Group. The offer was at a premium of 72% from the pre-deal market price. In early-October 2023, a panel reviewing the offer had recommended 10% hike in asking price.

The ongoing war in Gaza and intensified fighting in the border between Israel and Lebanon are cited as the key reasons that led to the suspension of the deal.

The joint venture project between BP and ADNOC would have given them access to gas-rich areas in the Eastern Mediterranean and Israel's energy sector.