Nearly a year after Abu Dhabi National Oil Co (ADNOC) and British energy firm BP Plc offered to buy a 50% stake in Israeli gas producer NewMed Energy for $2 billion, the bid has been suspended due to the geopolitical uncertainty in the region.
A statement from NewMed on Wednesday said the company and the consortium have agreed to suspend discussions due to “the uncertainty created by the external environment”.
The Tel Aviv stock exchange listed company added that ADNOC and BP have “reiterated its interest in the proposed transaction.”
“The process was suspended until the date that it will be renewed or the process is ended,” the Israeli firm said.
NewMed Energy is involved in the exploration, development, production and sale of natural gas and condensate. It is a subsidiary of Delek Group and holds 45.34% of the Leviathan Reservoir, the largest natural gas reservoir in the Mediterranean. Two years ago, Abu Dhabi’s Mubadala Petroleum acquired from Delek Drilling a 22% stake in the east Mediterranean Tamar gas field for about $1 billion.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
