BP and ADNOC want to buy Israeli gas company NewMed Energy
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Abu Dhabi National Oil Company (ADNOC) and British company BP have made an offer to buy 50% of Israeli gas company NewMed Energy for $2 billion. The deal, if completed, would allow the two companies to enter Israel’s fast-growing energy sector, the agency said. Reuters.
Under the plan, BP and ADNOC will buy NewMed’s publicly traded shares and take the Israeli company private. The buyers offered $3.38 per share of NewMed, at a 72 percent premium to the current share price. Thus, all NewMed is estimated at $3.96 billion.
BP and ADNOC also plan to create a joint venture that will “develop gas fields in international areas of mutual interest, including the eastern Mediterranean.”
NewMed owns the largest stake in the Leviathan gas field on the Mediterranean shelf near Israel’s border with Lebanon, which is operated by Chevron. NewMed and its partners plan to increase gas production at the field to 20-21 billion cubic meters by 2027 from the current 12 billion cubic meters. In addition, the company plans to build an LNG terminal to expand gas exports.
Read about how Israel and Lebanon divided gas fields in the Mediterranean Sea in the material “Kommersant” “Historic Deal Done Without TV Cameras”.
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