The offer is a further sign of the strengthening economic links between Israel and the United Arab Emirates since the two countries agreed to normalize ties in 2020. A deal like this will bring Israel into the top tier of energy suppliers.
LONDON, March 28 (Reuters) - BP (BP.L) and Abu Dhabi's state oil giant on Tuesday offered to jointly acquire 50% of Israeli offshore natural gas producer NewMed Energy (NWMDp.TA) for around $2 billion, making their entry into Israel's growing energy sector.
Abu Dhabi National Oil Co (ADNOC) and BP said they intend to form a new joint venture as part of the deal that will be "focused on gas development in international areas of mutual interest including the East Mediterranean."
The gas-rich offshore basin straddling Egypt, Israel, Cyprus and Lebanon has drawn some the world's top energy companies in recent years, particularly as Europe scrambles to secure supplies to replace Russian gas in the wake of Moscow's invasion of Ukraine.
NewMed is the largest stakeholder in the giant Leviathan offshore field, operated by Chevron (CVX.N), which produces 12 billion cubic metres (bcm) of gas that are supplied to Israel, Egypt and Jordan.
NewMed and its partners plan to nearly double Leviathan's production to 21 to 24 bcm by 2027 are also exploring plans for a liquefied natural gas (LNG) terminal to further boost exports, Chief Executive Officer Yossi Abu told Reuters.
"This is a sign of confidence in the East Med (Israel) becoming a major supplier of gas to Europe," Abu said.