Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) has established a subsidiary in Saudi Arabia. The newly formed company Modern Gas Saudi Arabia will have an initial capital of $530,000 and will be 80% owned by EGAS.
Announced by Egypt’s Ministry of Petroleum on March 17, the establishment of Modern Gas Saudi Arabia forms part of EGAS’ strategy to attract foreign currency inflows into the country and advance offshore expansion in Gulf Corporation Council countries.
In a related development, energy supermajor bp and UAE state-owned Abu Dhabi National Oil Company (ADNOC) announced plans in February to form a new JV in Egypt. bp will hold a majority stake with 51% while ADNOC will own the remaining 49%. The JV will encompass bp’s interests in three development concessions and various exploration endeavors in Egypt.
Furthermore, bp also announced a $1.5 billion investment plan last month for exploration and development activities in Egypt, while the possibility of an additional $5 billion investment in the coming years is being considered.
