The 2% stake in BP sold to Abu Dhabi in exchange for a holding in Abu Dhabi Company for Onshore Petroleum Operations (ADCO) will be controlled by Mubadala Development Co.
DUBAI, Dec 19 (Reuters) - The 2 percent stake in BP sold to Abu Dhabi in exchange for a holding in Abu Dhabi Company for Onshore Petroleum Operations (ADCO) will be controlled by Mubadala Development Co, its spokesman was quoted by The National newspaper as saying.
The firm became the second Western oil major to renew a 40-year onshore concession in Abu Dhabi on Saturday after almost two years of negotiations to improve terms to help operate the United Arab Emirates' biggest oilfields.
In exchange for the 10 percent stake in ADCO, BP agreed to issue new ordinary shares to Abu Dhabi worth 1.76 billion pounds ($2.20 billion).
"We will be owning and managing the shares on behalf of the Abu Dhabi government consistent with our portfolio and mandate as an investment company," Brian Lott was quoted in the local newspaper report.
A newspaper report, without attributing to anyone, says BP stake will be considered a passive investment and it was not yet clear whether Abu Dhabi will seek BP board representation.
The ADCO concession, including the Bab, Bu Hasa, Shah and Asab fields, has total resources of between 20 billion-30 billion barrels of oil equivalent over the term of the concession. The fields produce 1.6 million barrels per day (bpd) and are expected to reach 1.8 million bpd from 2017.
(Reporting by David French; Editing by Sherry Jacob-Phillips)
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you