bp: at the forefront of energy trends

Salem bin Ashoor, bp’s chief representative and general manager in the UAE, talks to The Energy Year about how the company is positioning itself at the forefront of energy trends in the UAE and globally and its plans for clean hydrogen hubs and CCUS. bp has been active in the UAE since the 1930s. Today, Abu Dhabi is an important hub for the company’s provision of integrated energy services.

How is bp positioning itself at the forefront of global and national energy trends?
The energy transition has become a pivotal theme that requires holistic and collective thinking from a financial, business, governmental and societal point of view. We remain focused on our transformation into an integrated energy company. Our three-pillar strategy (resilient hydrocarbons including oil and gas and refining, convenience and mobility, and low-carbon energy), includes our five transition growth engines, and integration underpins and connects it all.
Hydrogen, renewables and power are gaining more importance. However, the energy transition will not happen in the blink of an eye. It is not a switch, and it will need to be gradual in order not to disturb human progress. While we don’t have all the answers, collaboration and challenge have shaped our new strategy and it is better for it. Continued dialogue will be vital to its delivery.
There are three key factors shaping the current global energy spectrum and are important in the transition. One is energy security, the second is energy affordability, and the third is sustainability. These three are pivotal for achieving a balanced energy equation and are recurring themes on the agenda of the movers and shakers of the industry – from NOCs to IOCs. Majors have the responsibility and muscle to build and finance complex projects that will spearhead the transition. bp is playing its part by investing in today’s energy system, which is mainly oil and gas – and, not or – in our transition and the energy transition.
The UAE is aiming in the right direction and is fully committed to these three pillars. Moreover, they have clearly stated that partnership is crucial to materialising the energy transition. Likewise, technology has become, in the eyes of many, the first stepping stone to enable this transition.
In light of this, bp became the first energy company to commit to a reduction of emissions. To deliver our net-zero ambition by 2050 across our operations, production and sales, we are planning to lower emissions from our operations by 30-35% by 2030, decreasing emissions associated with carbon in our upstream oil and gas production by 35-40% by 2030 and reducing the carbon intensity of the products we sell by more than 15% by 2030.
Moreover, we shifted from being an IOC to an IEC [international energy company] by refreshing our strategy. The aim is to diversify away from traditional fossil fuel production faster than any of our peers while significantly scaling up our low-carbon energy investments. This is exactly our approach in the UAE as well.

Tell us about your decarbonising venture involving hydrogen production, CCUS and mobility.
In mid-2022, bp took a major step in strengthening its strategic partnership with ADNOC and Masdar, bringing international participation to its planned blue and green hydrogen developments in Teesside, in the northeast of England. ADNOC has taken a 25% stake in the design stage of our blue hydrogen project H2 Teesside, which is expected to kick-start the UK’s hydrogen economy at scale, with the development of two 500-MW hydrogen production units by 2030.
As part of this agreement, bp, ADNOC and Masdar joined forces to explore the development of clean hydrogen hubs in both the UAE and UK at an initial scale of 2 GW, comprising 1 GW in the UAE and 1 GW in the UK. Under this agreement, ADNOC and bp will also jointly identify areas for potential partnership in greenfield carbon capture and underground storage and best-in-class methane detection platforms.
CCUS is critical for decarbonisation and has been built at commercial scale in the UK and UAE at the Teesside and Al Reyadah facilities, respectively. With this framework agreement, we look forward to expanding our shared leadership in CCUS technology to explore pilot opportunities for further industrial-scale carbon capture within the UAE.
Lastly, along with Masdar we are now exploring opportunities to develop sustainable energy and mobility solutions. To this end, we have joined with Abu Dhabi Waste Management Centre (Tadweer) and Etihad Airways to look into the production of sustainable aviation fuels, from both hydrogen and municipal waste gasification. With it we intend to pioneer decarbonised air corridors between the UK and UAE – one of the busiest global air travel routes.

How involved is bp in the UAE’s Bab field and how is it contributing to reversing declining flows?
bp has a 10% interest in ADNOC Onshore and is the asset lead of the Bab field, which is the most complex onshore oilfield in Abu Dhabi, as well as the oldest operating field in the UAE. Due to depleting oil flows, the field has been undergoing constant upgrades as a strategy to enhance production and sustain long-term production capacity.
bp has a standalone entity called bpX focused on unconventional reservoirs, which is mainly the development of very tight reservoirs (with very low permeability). Its operations involve the implementation of advanced hydraulic fracturing technology. We are leveraging this expertise and these technologies to apply them here, helping ADNOC Onshore enhance its production. Currently, ADNOC Onshore has a sustained production of around 2 million bopd across its diverse plays, which corresponds to a 200,000-bopd share for bp.

In what ways is bp fostering local content, entrepreneurship and talent?
We are directly involved in ADNOC Onshore and ADNOC LNG, with 10% respectively, and they make a substantial contribution to the country’s economy and wellbeing. In addition to this, along with Masdar, we created The Catalyst, which is the first technology start-up accelerator that focuses on sustainability and clean technology. With its base in Masdar City, the company contributes to fostering a robust R&D ecosystem, promotes innovation and entrepreneurship and generates social impact via local innovation.
Also, over the years we have worked hand in hand with the Environment Agency of Abu Dhabi on the so-called Sustainable Schools Initiative, which aims to build environmental awareness in schools, allowing youth to learn ways to reduce their ecological footprint while creating a sense of ownership and responsibility for the future by addressing their own environmental impact – in Abu Dhabi, especially – around the areas of sustainability and environmental education.

Read our latest insights on:

• Abu Dhabi
• UAE