Petroleum Africa
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Tuesday, March 28, 2023
bp today confirmed that, together with the Abu Dhabi National Oil Company (ADNOC), it has made a non-binding offer to take NewMed Energy private through an acquisition of the firm’s publicly held shares and a partial acquisition of Delek’s stake (5%), which would result in bp and ADNOC holding a combined 50% stake in NewMed Energy.
NewMed Energy is a subsidiary of Israeli conglomerate Delek Group which leads the development of the East Mediterranean with major natural discoveries in the Levant Basin’s Leviathan field, estimated at nearly 23 Tcf. Chevron is the operator of the development with a 39.7% stake.
bp and ADNOC intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean. This proposed transaction with NewMed Energy would be a significant first step in establishing this dynamic joint venture together with ADNOC.
In a statement, bp says, “When completed, this would strengthen the broader strategic partnership between ADNOC and bp across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship.
“This proposed transaction is consistent with bp’s stated strategy and financial frame including current guidance for capital expenditure. The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership.”
NewMed Energy has also issued a statement on the proposed transaction and reports it has formed an audit committee to “explore and resolve any issued pertaining to the proposed transaction.” It further stated, “There is no guarantee that the Transaction or the terms and conditions on which the Consortium wishes to agree with Delek Group with respect to the joint management of the Partnership after the closing of the Transaction will be deemed acceptable and agreed by Delek Group, or whether the parties will be able to reach any agreement.”
NewMed states the transaction will be subject to obtaining approval from the court that will supervise the arrangement, approval of the arrangement by the meeting of unit holders with a majority of 75% of all of the holders (including Delek Group and affiliates thereof) and a simple majority approval of the unit holders from the public (excluding Delek Group and affiliates thereof), and obtaining the additional regulatory approvals and consents from third parties required for closing a transaction of this kind. “
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