BP Back in Business With Abu Dhabi Deal

23 Dec 2016 Issue: 59 / 51,52

Abu Dhabi has signed up a second major to return to its onshore Adco concession, with BP taking 10%. The deal will boost Abu Dhabi’s efforts to crank up onshore output by 140,000 b/d next year. Alongside a deal to spend almost $1bn in Mauritania this highlights BP’s renewed willingness to splash the cash.

BP signed up to a 10% stake in Abu Dhabi’s 1.66mn b/d onshore Adco concession on 17 December. It ends a near two-year hiatus since Total secured a 10% stake in the concession in January 2015, with Japan’s Inpex (3%) and South Korea’s GS Energy (3%) signing up to smaller shares shortly after. The concession runs until 2054. State oil firm Adnoc confirms that it is still looking to fill the remaining 12% of the 40% planned IOC allocation.

Adnoc Director General Sultan al-Jabir says “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.” (CONTINUED - 1716 WORDS)