BP takes stake in Abu Dhabi onshore fields

Article by Staff Writer

BP has taken a 10% stake in Abu Dhabi’s onshore oil concession operated by ADCO, the Abu Dhabi Company for Onshore Petroleum Operations, continuing the expansion of the UK major’s portfolio.

In exchange, BP has given the Abu Dhabi government approximately a 2% stake in the oil firm valued at around £1.85bn (US$2.3bn).

As part of the deal, BP will become a 10% owner in ADCO and asset leader of the Bab asset group. Alongside its existing partnerships in Abu Dhabi, the deal will increase BP’s output in the country from 95,000 bbl/d today to 260,000 bbl/d in 2017.

The deal extends a period of expansion for BP after years of selling off assets to cover the costs of its Deepwater Horizon spill in 2010. In the past month, the company has signed deals with Kosmos Energy to explore for oil in Mauritania and Senegal, bought a 10% stake in Egypt’s massive Zohr gas field, and committed US$9bn for phase two of its Mad Dog project in the Gulf of Mexico.

The ADCO concession, which includes the Bab, Bu Hasa, Shah and Asab fields, have total resources of 20bn–30bn bbl of oil over the 40 lifetime of the concession. From the 1970s, BP had held a 9.5% interest in the concession until it expired in late 2014. Partners in the new concession, which runs to 2054, include Total, Inpex and GS Energy which respectively hold 10%, 5% and 3% stakes. ADNOC, the country’s national oil company, is still looking to find partners to take the remaining 12% earmarked for foreign investment.

BP will second up to 50 technical staff to ADCO to support the operation and development of the assets.

“Today’s agreement marks a new phase in BP’s long relationship with Abu Dhabi and, in particular, ADNOC,” said BP CEO Bob Dudley. “BP will work closely with ADNOC to realise the full potential of these world-class resources and I welcome Abu Dhabi as an important investor in BP.

“This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well. We will bring our people, cutting-edge technology and experience of managing mature giant fields around the world to help maximise recovery from these assets.”

Article by Staff Writer

Recent Editions

Catch up on the latest news, views and jobs from The Chemical Engineer. Below are the four latest issues. View a wider selection of the archive from within the Magazine section of this site.