View of the Leviathan gas field platform in the Mediterranean Sea taken from Nashlim Beach on the northern coast of Israel on August 29, 2022.
Jack Guess | AFP
DUBAI, United Arab Emirates – Plans by energy giants BP and Abu Dhabi National Oil Co (Adnoc) to acquire a 50% stake in Israeli natural gas producer NewMed have been put on hold due to regional unrest, NewMed said on Wednesday.
The three companies “have agreed to pause discussions regarding the proposed transaction due to the uncertainty caused by the external environment,” NewMed’s statement said.
As of the opening of the trading day, the company’s shares fell 8% on the Tel Aviv Stock Exchange.
The statement also said BP and ADNOC “reaffirmed their interest in the proposed transaction,” indicating that the deal was not permanently ruled out. The process will remain suspended until terminated or negotiations start up again, it added.
“There is no certainty that discussions or an agreement will be resumed in the future,” the statement read.
ADNOC declined to comment when contacted by CNBC. BP could not immediately be reached for comment.
this Original Equity Purchase Offer The news comes almost exactly a year after it was announced at the end of March that BP and Adnoc would jointly acquire a 50% stake in the Israeli company for $2 billion. The move would give British and Emirati oil majors access to Israel’s expanding energy sector and more of the rich natural gas reserves in the eastern Mediterranean.
At the time, BP and ADNOC said the deal would result in the companies establishing a joint venture focused on “gas development in areas of international mutual interest, including the Eastern Mediterranean.”
Two companies last month declare Egypt’s independent gas joint venture.
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