BP put further distance between itself and the greening policies of ex-chief executive Bernard Looney with a natural gas joint venture in Egypt.
Abu Dhabi National Oil Company is BP’s partner in the venture, the oil major said, with the UK company holding a 51% stake.
BP and ADNOC originally agreed to work together on the acquisition of a 50% stake in Israeli gas producer NewMed, but the war in Gaza has put that deal on hold.
Today’s move will again raise questions about BP’s commitment to its ‘greening’ plans under new chief Murray Auchincloss.
Under its previous CEO, the UK oil group had said it wants to reduce its fossil fuel output by 25% by 2030 from 2019 levels but is investing heavily oil and gas developments.
BP will contribute its interests in development concessions and exploration agreements in Egypt while ADNOC will make a proportionate cash contribution.
Properties included in the JV are Shorouk, North Damietta, North El Burg, North El Tabya, Bellatrix-Seti East and North El Fayrouz.
BP owns 10% of Shorouk, which contains the giant Zohr field, owns North Damietta, which includes the gas-producing Atoll field and has a 50% interest in North El Burg, which contains the undeveloped Satis field. The other three concessions are exploration agreements.
"This progressive joint venture partnership will enhance Egyptian energy security and the economic potential of the region's most populous Arab country," Musabbeh Al Kaabi, ADNOC's executive director for low-carbon solutions and international growth, said in the joint statement.