By Christian Moess Laursen


BP's joint offer with Abu Dhabi National Oil Co. to take Israeli gas producer NewMed Energy private has been put on hold due to uncertainty in the region.

NewMed said Wednesday that all parties agreed to suspend discussions but reiterated their interest in the proposed deal.

Last year, before the outbreak of the Israel-Hamas war, British energy giant BP and Adnoc made a non-binding bid to buy the free float and shares owned by Delek Group to bring their shareholding to 50% of NewMed, in a move to create a joint venture in the gas-rich areas in the east Mediterranean.

In October, Reuters reported that a panel reviewing the offer advised BP and Adnoc to raise their $2 billion bid by 10% to 12%, which initially cast doubts over the deal. BP subsequently confirmed the deal was progressing on track, according to Reuters.

"The process will remain suspended until such time as discussions resume or the process is terminated," NewMed said.

A BP spokesperson confirmed the move when approached by Dow Jones Newswires, but gave no further details.

NewMed has a 45.34% working interest in the largest natural-gas field in the Mediterranean--Leviathan--located 130 kilometers of the coast of Haifa, Israel, which supplies gas to Egypt and Jordan.

Last month, BP and Adnoc agreed to form a gas-focused joint venture in Egypt, which is expected to complete in the second half of 2024.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

03-13-24 0645ET