bp and Abu Dhabi National Oil Company (ADNOC) have made a non-binding offer to jointly purchase a 50% stake in Israel’s NewMed Energy.

The stake in NewMed could be worth $2bn, reported Reuters.

Under the offer, bp and ADNOC would purchase a 45% stake in NewMed’s free-floating shares and an additional 5% stake owned by Israeli conglomorate Delek Group.

As part of the proposed deal, ADNOC and bp intend to form a joint venture (JV) that aims to focus on developing gas assets in international areas of mutual interest including the East Mediterranean.

Upon completion of the proposed deal, bp and ADNOC JV will own a 50% stake in NewMed while Delek will hold the remaining 50% interest.

In a press statement, bp said: “When completed, this would strengthen the broader strategic partnership between ADNOC and bp across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship.”

NewMed owns a 45.3% stake in the Leviathan field offshore Israel that supplies gas to customers in Israel, Egypt and Jordan.

Said to be the largest natural gas reservoir in the Mediterranean, the Leviathan field is estimated to hold 22.9 trillion cubic feet (tcf) of recoverable gas. Chevron and Ratio own 39.66% and 15% stakes, respectively in the field.

Delek Drilling CEO Yossi Abu was reported by Reuters as saying that the production from the Leviathan field is planned to be increased to 24 from 21 billion cubic metres (bcm) by 2027.

Abu added that NewMed and its partners are also considering developing an LNG terminal to further strengthen exports.