BP (British Petroleum previously) has signed a Concession Agreement yesterday with the Abu Dhabi National Oil Company (ADNOC) for a US$2.2 billion, and for which it will receive a 10% stake through Abu Dhabi Company for Onshore Petroleum Operation Ltd. (ADCO) Concession of its onshore fields in Abu Dhabi.
As part of the deal, (BP) will become the manager of the Bab Offshore Oilfield, one of the six main oilfields in (ADCO) Concession. His Excellency, Dr. Sultan Al Jaber, the Chief Executive of Abu Dhabi National Oil Company (ADNOC) and Minister of State, said: "This agreement marks a milestone in our efforts to forge new partnership models that bring technology, and expertise.
In addition to the financing that is aimed at maximizing the value of our resources and supporting the transfer of knowledge.” His Excellency continued: “We always look forward to working with partners contributing to providing additional value and share our vision in the development of this important sector through the application of advanced and innovative technology to elevate operational efficiency.
In addition to contributing to increased value in the exploration, development and production of oil operations.” Al Jaber also emphasized that the renewed partnership with BP is a quantum and strategic leap for both parties. It contributes to the economic value and attractive returns through higher efficiency and smart management of assets and resources.
From his side, Bob Dudley: Managing Director and CEO of the (BP) Group said: "The Agreement represents a new phase in the solid relationship between BP, Abu Dhabi, and ADNOC. BP will continue its efforts in cooperation with ADNOC to optimize the investment potential of excellent assets and world-class level in Abu Dhabi." Dudley added: "This Agreement gives (BP) a long-term opportunity to work on important and relevant resources and significant competitive advantages. We will bring our people, and employ the latest cutting- edge technologies and experience of managing huge oilfields around the world; to contribute to achieve the best extraction levels from these assets. (BP) will work closely with ADNOC to realize the full potential of these world-class resources, and I welcome Abu Dhabi as an important investor in (BP).”
(BP) also owns the share of 14.67% in Concession of Abu Dhabi Marine Operating Company (ADMA-OPCO), in addition to 10% in each of the Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS), and the National Gas Shipping Company Ltd. (NGSCO).
In addition to that, (BP) produces about 95 thousand barrels per day of oil in Abu Dhabi. The first Concession Agreement of Abu Dhabi Onshore Fields was awarded to a group of international oil companies for 75 years: 1939- 2014.
In the late seventies of the last century, (BP)'s share of this privilege was 9.5%, and a new Concession Agreement took place in January 2015.Today, BP joins France's (TOTAL), (INPEX) of Japan and (GSM) Energy of South Korea, each of which have the share of 10%, 5% and 3%, respectively, and continue to choose ADNOC seeking strategic partners to share the remaining 12% of the 40% set for the partners.
It is worth mentioning that (ADNOC) is one of the world's leading companies in the energy sector with a production of 3.1 million barrels of crude oil and 9.8 billion cubic feet of raw gas per day. ADNOC’s operational tasks extend to include the entire hydrocarbon value chain through 18 companies that specialize in carrying out exploration, development, production, gas, refining and petrochemical tasks.