BP and ADNOC Suspend $2 Billion Stake Acquisition Offer to Israeli NewMed

In a recent development, BP and the Abu Dhabi National Oil Company (ADNOC) have reportedly suspended their planned acquisition of a $2 billion stake in the Israeli energy company NewMed due to “regional uncertainties.”

According to a statement released by NewMed Energy Limited Partnership, the companies have reached an agreement to suspend discussions regarding the intended share purchase due to the “uncertainty prevailing in the external environment.”

The statement highlighted that while BP and ADNOC have expressed renewed interest in the stake acquisition, the process will remain on hold until discussions resume or are terminated altogether. It emphasized the lack of certainty regarding the continuation of negotiations, the possibility of reaching a future agreement, or the terms of any potential deal.

Last year in March, BP and ADNOC had announced a non-binding offer to acquire a 50% stake in NewMed. The value of the stake acquisition was estimated to be $2 billion.

NewMed currently holds a 45% stake in Israel’s largest gas field, Leviathan, and a 30% stake in the Aphrodite field.

The decision comes amidst escalating tensions in the region, particularly following a comprehensive attack by Hamas’ armed wing, the Izz ad-Din al-Qassam Brigades, on Israel on October 7, 2023. Israel reported significant casualties from the attacks, with Hamas citing ongoing violations against Palestinians and sacred sites as justification for the assault.

Since October 7, Israel has launched numerous attacks on the Gaza Strip, resulting in a substantial number of casualties among Palestinians, including women and children.

The suspension of the acquisition offer reflects the cautious approach of multinational corporations amid heightened geopolitical uncertainties in the Middle East. The future of the deal remains uncertain pending further developments in the region.

source: prepared by Melisa Beğiç

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