Adnoc and UK energy company BP <a href="https://www.thenationalnews.com/business/road-to-net-zero/2022/09/30/uae-and-uk-cross-border-investments-in-hydrogen-to-support-decarbonisation-and-job-growth/" target="_blank">have jointly </a>made a non-binding offer to acquire 50 per cent of Israel's NewMed Energy and take the company private, the Abu Dhabi energy company said on Tuesday. The transaction will include an acquisition of the free float and a partial acquisition of Delek Group's stake, which would result in <a href="https://www.thenationalnews.com/business/road-to-net-zero/2022/05/24/adnoc-and-masdar-deepen-collaboration-with-bp-to-develop-clean-hydrogen/" target="_blank">Adnoc and BP</a> holding 50 per cent of NewMed Energy, Adnoc said. The consortium has offered to pay 12.05 shekels ($3.35) for each purchased unit, which reflects a premium of about 72 per cent to the closing price of the units on the Tel Aviv Stock Exchange on March 26, NewMed Energy said. That will value the transaction at roughly $2 billion. “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,” Adnoc said. The proposed transaction with NewMed Energy is expected to be a “significant first step in establishing this dynamic joint venture”. If completed, the move will boost the broader strategic partnership between Adnoc and BP across energy, renewables and carbon capture and storage (CCS) technology, the companies said. NewMed Energy, a subsidiary of Delek Group, holds 45.34 per cent of the Leviathan Reservoir, the largest gas reservoir in the Mediterranean. It also plans to invest in the development of new technologies to produce energy from alternative sources, including production of blue hydrogen, CCS and promotion of renewable energy projects, according to its website. “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,” Adnoc said. Last year, Adnoc’s board endorsed plans to bring forward the company’s objectives to expand its oil production capacity to 5 million barrels per day by 2027, from the previous target of 2030, as part of an accelerated growth strategy. The state oil company has also allocated $15 billion for a variety of projects by 2030, which will help to accelerate its low-carbon <a href="https://www.thenationalnews.com/business/energy/2023/01/10/adnocs-new-gas-subsidiary-begins-operations/">growth strategy.</a> Adnoc will invest in clean power, CCS, further electrification of operations, energy efficiency and new measures to build on its policy of zero-routine gas flaring. In May last year, Adnoc, clean energy company Masdar and BP <a href="https://www.thenationalnews.com/business/road-to-net-zero/2022/05/24/adnoc-and-masdar-deepen-collaboration-with-bp-to-develop-clean-hydrogen/" target="_blank">signed a strategic partnership </a>agreement to develop clean hydrogen and tap into opportunities offered by the energy transition. As part of the partnership, Adnoc and BP advanced to the design phase of the H2Teesside low-carbon hydrogen plant, the largest blue hydrogen project in the UK, the companies said at the time. H2Teesside will provide clean hydrogen to chemical processors, fertiliser manufacturers and heat and power utilities. The companies also agreed to explore the production of sustainable aviation fuels in the UAE by converting municipal waste through gasification that is powered by solar-to-green hydrogen. Adnoc and BP said on Tuesday that they were seeking to explore a host of mechanisms for the formation and potential further expansion of their new partnership. The companies also said they would update the market appropriately on the proposed transaction.