BP and ADNOC Target Eastern Mediterranean Gas Riches: Report

Author: Lekha Gupta | August 05, 2024 10:20am

BP p.l.c. (NYSE:BP) shares are trading lower today. The British oil giant and Abu Dhabi National Oil Co (ADNOC) reportedly met with Cypriot Energy Ministry officials on Friday to discuss potential investments in Cyprus’s emerging natural gas sector.

Recent major gas discoveries and developments in Egypt and Israel have attracted top companies, especially after disruptions in Russian gas flows due to its invasion of Ukraine, reported Reuters.

The report cited a source who said, “The meeting with the Ministry explored on potential cooperation in the Cyprus EEZ,” referring to a sea zone where Cyprus has commercial rights.

In May, BP reportedly planned to transfer assets into a new joint venture with the ADNOC to focus on developing gas resources in the East Mediterranean.

Last week, BP entered into a memorandum of understanding (MoU) with the Iraqi Government to discuss a major redevelopment initiative for the Kirkuk region.

Also, earlier this year, BP and ADNOC suspended talks in their joint bid to buy a 50% stake for $2 billion in Israeli gas company NewMed Energy.

Investors can gain exposure to the stock via Direxion Hydrogen ETF (ARCA: HJEN) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).

Price Action: BP shares are down 3.51% at $32.88 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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