BP inks Abu Dhabi concession deal

BP on Friday acquired a 10% interest Abu Dhabi’s onshore concession managed by Abu Dhabi Company for Onshore Petroleum Operations (ADCO).

The deal, signed with the emirate’s Supreme Petroleum Council and Abu Dhabi National Oil Company (ADNOC), has a lifetime of 40 years and represents a value of USD 2.2 billion. BP also became a shareholder in ADCO.

“This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well,” chief executive Bob Dudley said in a statement.

Other shareholders in the concession are Total (10%), INPEX Corporation (5%) and South Korea’s GS Engineering. Twelve percent of the 40% earmarked for ADNOC’s international partners remains outstanding. BP previously held a 9.5% stake in ADCO, which expired in 2014. Through its other Abu Dhabi shareholdings, BP sources a net production of 95,000 bopd from the emirate. In 2017, it seeks to add 165,000 bopd.