BP PLC has signed an agreement with the Supreme Petroleum Council of Abu Dhabi and Abu Dhabi National Oil Co. (ADNOC) that grants BP a 10% interest in Abu Dhabi Co. for Onshore Petroleum Operations Ltd.’s (ADCO) onshore oil concession.
In addition to the interest in the ADCO concession, BP becomes a 10% shareholder in ADCO, which operates the concession. The agreement includes BP becoming asset leader for the Bab asset group within the concession.
In connection with the transaction, BP has agreed to issue new ordinary shares representing about 2% of BP’s issued share capital, to be held on behalf of the Abu Dhabi government.
BP becomes a 10% shareholder of ADCO and the concession alongside Total SA 10%, Inpex Corp. 5%, and GS Energy 3%. ADNOC continues to look for partners to take up the remaining 12% stake of the 40% earmarked for foreign partners.
The ADCO concession, including the Bab, Bu Hasa, Shah and Asab fields, has total resources of 20-30 billion bbl of oil equivalent over the term of the concession. The overall production in 2016 is expected to average 1.66 million b/d of oil. The concession, put in place in January 2015, is valid until yearend 2054.
BP has been present in Abu Dhabi since 1939. Since the 1970s, BP held a 9.5% interest in the ADCO onshore concession that expired in late-2014. It also holds 14.67% interest in the offshore concession and ADMA-OPCO, which operates this concession, and 10% interests in both the Abu Dhabi Gas Liquefaction Co. and National Gas Shipping Co.