ADNOC awards 10% stake in ADCO concession to BP
As part of BP's interest in the concession, it will become asset leader for the Bab integrated asset group within ADCO
ADNOC signed an agreement with BP, awarding the British oil and gas giant a 10% interest in Abu Dhabi’s onshore oil concession operated by ADCO, the Abu Dhabi Company for Onshore Petroleum Operations.
As part of BP’s interest in the concession, it will become asset leader for the Bab integrated asset group within ADCO.
The agreement was signed by Sultan Ahmed Al Jaber, ADNOC Group chief executive officer, and Bob Dudley, BP Group chief executive.
Al Jaber said, “BP has long been a strategic partner to Abu Dhabi and ADNOC. Alongside our other partners, BP has played an important role in the development of our oil and gas assets. This agreement marks a milestone in our efforts to forge new partnership models that bring technology, expertise and financing aimed at maximising the value of our resources and supporting the transfer of knowledge.”
BP has been present in Abu Dhabi since 1939. Since the 1970’s, BP held a 9.5% interest in the ADCO onshore concession that expired in late 2014. A new concession was put in place in January 2015.
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%, 5% and 3% interest respectively. ADNOC will continue to explore opportunities with potential partners for the remaining 12% stake of the 40% earmarked for foreign partners.
As part of the agreement, BP will second up to 50 technical staff to ADCO, bringing technology, expertise and experience to support the ongoing efficient operation and development of the assets.
BP also holds a 14.67% interest in the Abu Dhabi Marine Operating Company, ADMA-OPCO, offshore concession, and 10% interests in both the Abu Dhabi Gas Liquefaction Company (ADGAS) and the National Gas Shipping Company (NGSCO).
BP’s net share of oil and gas production from Abu Dhabi is approximately 95,000 barrels of oil a day.