BP and ADNOC explore gas investments in the Eastern Mediterranean

BP and ADNOC are in talks with Cyprus to explore gas investments, following recent discoveries in Egypt and Israel.

Share:

Plateforme d'exploration en méditerranée orientale

Representatives from BP (British Petroleum) and the Abu Dhabi National Oil Company (ADNOC) are meeting with officials from Cyprus’ Ministry of Energy to explore investment opportunities in the natural gas sector.
The discussions come as energy companies seek to diversify their sources of supply in the wake of geopolitical turmoil.
BP and ADNOC have formed a joint venture to develop new gas resources in the Eastern Mediterranean.
Recent discoveries in Egypt and Israel have attracted growing interest, particularly following the disruption of gas flows from Russia.

Context and opportunities

Since 2007, Cyprus has awarded exploration licenses for 10 of the 13 offshore blocks surrounding the island.
Natural gas discoveries have been made in five wells in three of these blocks, but none of these resources are yet commercially exploited.
Current discussions are aimed at assessing opportunities for cooperation in Cyprus’ Exclusive Economic Zone (EEZ), where the island holds exclusive commercial rights.
Collaboration between BP, ADNOC and Cyprus could enhance the region’s energy security and offer significant economic opportunities.
The initiative by BP and ADNOC reflects a wider trend among major companies to diversify their sources of energy supply.

Strategic Investments

Earlier this year, ADNOC and BP proposed a $2 billion bid to acquire a 50% stake in Israeli gas producer NewMed Energy LP.
However, this offer was put on hold due to regional uncertainty.
This decision illustrates the complexity of energy investments in politically unstable but resource-rich areas.
The exploration and development of new gas resources in the Eastern Mediterranean could not only enhance the region’s energy security, but also create considerable economic opportunities for the countries involved.
Investment prospects in this region remain promising, with significant development potential that could transform the local and regional energy landscape.

Sustainable Development and Responsibility

Current discussions between BP, ADNOC and the Cypriot authorities include environmental and sustainability considerations.
It is essential to ensure that the development of gas resources is carried out responsibly, minimizing environmental impacts and maximizing long-term economic benefits.
The collaboration between these energy giants and Cyprus could represent a major breakthrough in the exploitation of gas resources in the Eastern Mediterranean.
This would contribute to the diversification of Europe’s energy supplies, reducing dependence on Russian imports.

Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.