Abu Dhabi National Oil Company (ADNOC) and BP have made a non-binding offer to acquire 50 percent of Israeli offshore natural gas producer NewMed Energy.

ADNOC and BP intend to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean.

According to the statement, “The offer would involve the acquisition of the free float and partial acquisition of Delek Group Ltd’s stake, which would result in ADNOC and BP holding 50 percent of NewMed Energy.”

NewMed is the largest stakeholder in the giant Leviathan offshore field, operated by Chevron CVX.N, which produces 12 billion cubic meters (bcm) of gas that are supplied to Israel, Egypt, and Jordan.

This proposed transaction with NewMed Energy would be a significant first step in establishing this dynamic joint venture together with BP.

When completed, this would strengthen the broader strategic partnership between ADNOC and BP across oil and gas, hydrogen, and carbon capture and storage technology and would deepen the partners’ long-standing relationship, as per the statement.

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.

The company stated that this proposed transaction is consistent with ADNOC’s stated growth strategy across its value chain to responsibly meet rising energy demand and support global energy security.

The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership. ADNOC and BP will update the market on the proposed transaction as appropriate, as per the statement.