A joint offer was made by British Petroleum (BP) and the Abu Dhabi National Oil Company (ADNOC) to acquire 50% of NewMed Energy (TASE: NWMD), which is owned by the Delek Group (TASE: DLEKG). The offer is at a price higher than the peak NewMed Energy reached on the Tel Aviv Stock Exchange last year. Each participation unit was offered at NIS 12.05, a 65% premium over Sunday’s closing price, valuing the partnership at NIS 14.2 billion.

As of the close of trading on Tuesday, NewMed’s shares gained 37% and Delek jumped 17%.

This move by BP and ADNOC is significant as it represents a direct interest in Israel’s Leviathan gas reservoir, which has been a focus of several energy companies in recent years. Chevron acquired almost 40% of Leviathan through the acquisition of Noble Energy in 2020.

Yossi Abu, the CEO of NewMed Energy, stated that the offer is the result of successful relationship development in recent years with the region’s energy companies. He also stated that this offer represents a significant vote of confidence in the Israeli gas market and NewMed Energy’s assets.

The discovery of Leviathan and other fields have significantly improved Israel’s energy security and turned it into a gas exporter. Part of its gas is delivered to Egypt and re-exported in liquefied form to Europe.

According to BP statement, if the deal goes ahead, it would intend to form a new joint venture with ADNOC that will concentrate on gas development in international areas of mutual interest, including the East Mediterranean. The deal would strengthen the broader strategic partnership between ADNOC and BP across oil and gas, hydrogen, and storage technology.

If the deal is approved, BP and ADNOC will hold 50% of the partnership through a joint company with the other half belonging to Delek Group. This potential deal could represent a significant step forward in the development of the Israeli gas market and the wider energy sector in the region.