Abu Dhabi: British Petroleum has taken a 10 per cent stake in Abu Dhabi’s onshore oil concession operated by Adco, the Abu Dhabi Company for Onshore Petroleum Operations for a period of 40 years, a statement by Abu Dhabi National Oil Company (Adnoc) said on Saturday.
As part of BP’s interest in the concession, it will become asset leader for the Bab integrated asset group within Adco.
An agreement in this regard was signed by Dr Sultan Ahmad Al Jaber, Adnoc Group Chief Executive Officer, and member of the Supreme Petroleum Council of the Emirate of Abu Dhabi, and Bob Dudley, BP Group Chief Executive.
BP joins Total of France, Inpex Corporation of Japan, and GS Energy of South Korea as shareholders of Adco and the onshore concession, who each own a 10 per cent, 5 per cent and 3 per cent interest respectively.
BP’s Group Chief Executive Dudley said the agreement marks a new phase in BP’s long relationship with Abu Dhabi and, in particular, Adnoc. “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.”
BP also holds a 14.67 per cent interest in the Abu Dhabi Marine Operating Company, Adma-Opco, offshore concession, and 10 per cent interests in both the Abu Dhabi Gas Liquefaction Company (Adgas) and the National Gas Shipping Company (Ngsco).
In addition to the interest in the Adco concession, BP becomes a 10 per cent shareholder in Adco, BP said in a separate statement.
BP has also agreed to issue new ordinary shares representing approximately 2 per cent of BP’s issued share capital to be held on behalf of the Abu Dhabi Government.
The issuance of the new ordinary shares is subject to certain listing requirements and is expected to be completed shortly, BP said.
BP’s net share of oil and gas production from Abu Dhabi is currently around 95,000 barrels of oil a day and is expected now to grow to approximately 260,000 barrels of oil a day in 2017.
The overall production in 2016 is expected to average around 1.66 million barrels of oil per day (bpd). The concession, put in place in January 2015, is valid until the end of 2054.
The Adco concession, including the Bab, Bu Hasa, Shah and Asab fields, has total resources of between 20-30 billion barrels of oil equivalent over the term of the concession.
BP has been present in Abu Dhabi since 1939. Since the 1970s, BP held a 9.5 per cent interest in the Adco onshore concession that expired in late 2014. A new concession was put in place in January 2015.
Meanwhile, Adnoc said it will continue to explore opportunities with potential partners for the remaining 12 per cent stake of the 40 per cent earmarked for foreign partners.
“Our renewed partnership with BP will support Adnoc in achieving maximum economic value and levels of recovery. This is an attractive and strategic agreement for both parties that will deliver competitive returns and long term growth opportunities,” Dr. Al Jaber said.
