BP and Adnoc Suspend $2 Billion Investment in Israeli Gas Producer Amid Gaza Conflict

BP and the United Arab Emirates' Adnoc had big plans to buy a chunk of Israel's leading natural gas producer, NewMed Energy, but they've hit the pause button because of the growing tensions in Gaza.

by Faruk Imamovic
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BP and Adnoc Suspend $2 Billion Investment in Israeli Gas Producer Amid Gaza Conflict
© Getty Images/David McNew

BP and the United Arab Emirates' Adnoc had big plans to buy a chunk of Israel's leading natural gas producer, NewMed Energy, but they've hit the pause button because of the growing tensions in Gaza. They were thinking of shelling out $2 billion for half of NewMed, but now they're saying it's just too risky with everything that's going on.

When Business Meets Politics

This deal was kind of a big deal, especially since BP and Adnoc announced it almost a year ago. They wanted to team up and dig for natural gas in the Mediterranean and other spots. It was all part of getting Israel and the UAE closer together after they decided to start getting along in 2020.

But now, with all the fighting in Gaza, things are getting complicated. The UAE wants the fighting to stop, and this war is making people in the region pretty mad at some Western companies, thinking they're backing Israel. Big names like Starbucks and McDonald's are feeling the heat.

What's Next for the Deal?

NewMed's saying BP and Adnoc are still interested, but who knows when they'll start talking about it again. With things so up in the air, they've decided to wait and see how everything turns out.

This is a big reminder of how tricky it can be for companies trying to do business where there are political fireworks. NewMed's a major player because it owns a big slice of the Leviathan Reservoir, which is a huge deal in the gas world.

BP and Adnoc haven't given up on working together, though. They're planning to do some gas projects in Egypt, which shows they're still on the same page, just not about the deal in Israel right now. This whole situation shows just how tough it can be to mix business with the unpredictable world of international politics.

For companies like BP and Adnoc, figuring out where to invest next is always going to be a bit of a balancing act, especially in places where peace isn't a sure thing.

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