UAE-Israel ties strengthen further with offer for NewMed Energy

UAE-Israel ties strengthen further with offer for NewMed Energy

March 28, 2023









The United Arab Emirates’ state-owned oil and gas company and British Petroleum (BP) announced on Tuesday an offer to buy a stake in a major Israeli energy firm. The offer demonstrates the UAE’s continued interest in the Israeli gas sector despite political tensions. 

BP and Abu Dhabi National Oil Company (ADNOC) made a nonbinding offer to take Israel’s NewMed Energy private and purchase 50% of the company. The offer is consistent with BP’s plans to expand in the eastern Mediterranean where NewMed Energy operates. BP and ADNOC are planning to form a joint venture in the region, BP said in a press release. 

NewMed Energy’s stock rose more than 40% on Tuesday on the back of the news, closing at 10.12 shekels ($2.85) a share, according to data.

What it means: NewMed Energy, previously known as Delek Drilling, is a subsidiary of Israel’s Delek Group conglomerate. NewMed Energy is a publicly traded company on the Tel Aviv Stock Exchange. BP and ADNOC’s offer would make the company private by buying up the publicly traded shares. 

NewMed Energy said they received the offer on Monday. BP and ADNOC offered to pay 12.05 shekels ($3.40) for each share.