Israel deal: BP is keen to expand its presence in the Eastern Mediterranean
BP and United Arab Emirates state energy company Adnoc have suspended a deal to buy a £1.6 billion stake in an Israeli gas group during the Gaza war.
The companies had offered to buy a 50 percent stake in Newmed a year ago.
But the negotiations were thrown into doubt in October after Hamas militants invaded Israel from Gaza.
Newmed said yesterday that the trial had been suspended due to “uncertainty created in the external environment” – meaning the war.
The BP and Adnoc offer was hailed as a milestone as it underlined the improving relationship between Israel and the Arab world.
Israel and the UAE only formally recognized each other in 2020.
But the UAE has repeatedly condemned Israel for what it has described as the “catastrophic and dangerous humanitarian situation” in Gaza.
Newmed said it was still keen to complete the deal. It is the largest stakeholder in a giant gas field, Leviathan, which supplies gas to Israel, Egypt and Jordan.
BP and Adnoc said last month they would work together on natural gas projects in Egypt.