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BP has been present in  Abu Dhabi since 1939.
BP has been present in  Abu Dhabi since 1939.

BP Takes $2.2b Stake in Abu Dhabi Oilfields

BP Takes $2.2b Stake in Abu Dhabi Oilfields

BP has agreed a $2.2 billion deal for a stake in Abu Dhabi’s largest oilfields, in the latest sign of the UK oil group replenishing its portfolio after years of retrenchment.
The UK’s second-biggest oil group will issue new ordinary shares to pay for 10% of the Abu Dhabi Company for Onshore Petroleum Operations Ltd., giving the emirate a 2% holding in BP, the London-based company said in a statement, Bloomberg reported.
The agreement promises additional cash flow and revenue following a downturn that has forced the industry to slash billions of dollars of investments worldwide in the past two years. The payment in shares also helps BP preserve its own cash and maintain a balance sheet that has seen debt and leverage rise during the oil-price collapse.
“The economics are good for us and for our shareholders, and for BP it brings a strategic partner,” Chief Executive Officer Bob Dudley said in an interview in Abu Dhabi. "This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well."
The deal will provide an output of 160,000 barrels a day, in addition to the 95,000 barrels BP now produces in Abu Dhabi, Dudley said.
The 40-year concession includes the Bab, Bu Hasa, Shah and Asab fields with total resources of as much as 30 billion barrels of oil equivalent, BP said.
Abu Dhabi’s 2% stake will make it one of BP’s biggest shareholders. Kuwait, which along with the United Arab Emirates is a member of the Organization of Petroleum Exporting Countries, owns 1.7%.
BP has been present in Abu Dhabi since 1939 and held a 9.5% stake in the company that operates the onshore fields since the 1970s, according to the statement.
The concession expired in 2014 and Abu Dhabi started negotiating partnerships again in the following year. BP also has stakes in offshore fields and a gas liquefaction company.
France’s Total SA owns a 10% stake in the Abu Dhabi onshore concessions, Japan’s Inpex Corp. has 5% and South Korea’s GS Energy 3%, BP said.

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