UAE-Israel ties strengthen further with offer for NewMed Energy
Abu Dhabi National Oil Company and British Petroleum are seeking a 50% stake in the firm. The news follows the activation of the Israel-UAE free trade agreement and another Emirati firm buying a stake in Israel's gas fields.
The United Arab Emirates’ state-owned oil and gas company and British Petroleum (BP) announced on Tuesday an offer to buy a stake in a major Israeli energy firm. The offer demonstrates the UAE’s continued interest in the Israeli gas sector despite political tensions.
BP and Abu Dhabi National Oil Company (ADNOC) made a nonbinding offer to take Israel’s NewMed Energy private and purchase 50% of the company. The offer is consistent with BP’s plans to expand in the eastern Mediterranean where NewMed Energy operates. BP and ADNOC are planning to form a joint venture in the region, BP said in a press release.
NewMed Energy’s stock rose more than 40% on Tuesday on the back of the news, closing at 10.12 shekels ($2.85) a share, according to data.
What it means: NewMed Energy, previously known as Delek Drilling, is a subsidiary of Israel’s Delek Group conglomerate. NewMed Energy is a publicly traded company on the Tel Aviv Stock Exchange. BP and ADNOC’s offer would make the company private by buying up the publicly traded shares.
