BP signs $2.2 billion Abu Dhabi oil deal

LONDON: British oil giant BP secured a 10 per cent share in an onshore oil concession in Abu Dhabi on Saturday in a deal worth $2.2 billion, the companies said. BP signed an agreement with Abu Dhabi National Oil Company (ADNOC) to take a stake in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO) which operates the 40-year concession. “This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well,” BP Chief Executive Bob Dudley said in a statement. BP said it would pay Abu Dhabi with new shares worth £1.76 billion ($2.2 billion), leaving the emirate with a two-per cent stake in the British company.
BP will second up to 50 technical staff to ADCO, whose oilfields produce 1.4 million barrels per day.
“This agreement marks a milestone in our efforts to forge new partnership models that bring technology, expertise and financing aimed at maximising the value of our resources and supporting the transfer of knowledge,” ADNOC Chief Executive Sultan Ahmed al Jaber said. In January, French giant Total  clinched a 10 per cent participating share in the concession. Inpex Corp of Japan secured five per cent and South Korea’s GS Energy three percent. Total and BP had both held 9.5 per cent equity stakes in the ADCO concession since the 1970s. Shell  and Exxon  were also partners in the old concession.
Since then other Asian energy companies were granted smaller stakes INPEX Corporation of Japan, and GS Energy of South Korea  received 5 per cent and 3 per cent stakes respectively.  ADNOC said it “continues to look for partners to take up the remaining 12 per cent stake of the 40 per cent earmarked for foreign partners.” As part of the deal, BP said it would issue 392,920,353 of new ordinary shares to be held on behalf of Abu Dhabi’s government at a price of £4.47  ($5.58) per ordinary share. — Agencies