BP awarded 10% stake in Abu Dhabi onshore concession

British Petroleum (BP) inked an agreement on Saturday with the United Arab Emirates’ Supreme Petroleum Council and state-owned Abu Dhabi National Oil Company (ADNOC) for a 10 percent interest in an onshore oil concession.

The concession – operated by the Abu Dhabi Company for Onshore Petroleum Operations (ADCO) – has a life of 40 years, BP said in a statement.

In connection with the transaction, the London-based firm has agreed to issue new ordinary shares representing approximately 2 percent of its issued share capital (excluding treasury shares) to be held on behalf of the Abu Dhabi government.

The ADCO concession – which includes the Bab, Bu Hasa, Shah and Asab fields – has total resources of between 20-30 billion barrels of oil equivalent over the term of the concession.

Overall production in 2016 is expected to average around 1.66 million barrels a day, BP said. The concession, put in place in January 2015, is valid until the end of 2054.

In addition to the stake in the concession, BP will also become a 10 percent shareholder in ADCO. France’s Total, Japan’s INPEX Corporation, and South Korea’s GS Energy hold interests of 10 percent, 5 percent and 3 percent respectively.

ADNOC is still seeking partners for the remaining 12 percent stake, of a total 40 percent allocated for foreign companies, the statement said.