(Alliance News) - BP PLC on Tuesday said it made a non-binding offer alongside Abu Dhabi National Oil Co take NewMed Energy Management Ltd private.
London-based oil major BP said it plans to buy a stake in Israel-based NewMed Energy from also Israel-based Delek Drilling LP, an energy oil & gas company.
AFP on Tuesday reported that the offer was USD4 billion, noting that the participation of United Arab Emirates-based Abu Dhabi National Oil Co in the bid for Israel-based NewMed Energy was a sign of quickening normalisation of relations between the two Middle Eastern nations.
In September, NewMed Energy mulled to merge with Capricorn Energy PLC, Edinburgh-based upstream energy company with assets in the UK North Sea, Mexico, Suriname, Mauritania and Egypt.
However, in February, the Capricorn board recommended that shareholders vote against the idea, citing a "strategic review and taking into consideration the views expressed by shareholders".
"bp and Abu Dhabi National Oil Co intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean. This proposed transaction with NewMed Energy would be a significant first step in establishing this dynamic joint venture together with Abu Dhabi National Oil Co ," BP explained.
It added that the completed joint venture would strengthen the strategic partnership with Abu Dhabi National Oil Co across oil and gas, hydrogen, carbon capture and storage technology.
BP shares rose 1.8% to 505.10 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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