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Energy

BP Plc (ADR) (BP) Acquires 10% Stake In UAE Oil Fields

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BP aims to benefit massively by acquiring stake in various projects all over the world

BP plc (ADR) (NYSE:BP) has been in the news lately for investing on various projects all over the world. The energy giant has acquired stake in various companies for both – natural gas and oil exploration. It has also decided to move its US headquarters to Denver, bringing in jobs to that area. In recent news, the energy giant has 10% of the Abu Dhabi based company for Onshore Petroleum Operations. The deal is worth $2.2 billion with the Abu Dhabi emirate.

BP will pay for the deal by transferring its 2% share capital to the government of Abu Dhabi as reported by various sources after the deal was announced. It will make BP the concession holder of the Bab, Bu Hasa, Shah, and Asab oilfields, which the energy giant will operate for the next 40 years. Bloomberg reported that these oil fields would account for approximately 30 billion barrels of oil over the next 40 years.

BP CEO Bod Dudley informed Bloomberg, “This deal will provide an output of 160,000 barrels a day, in addition to the 95,000 barrels BP now produces in Abu Dhabi”.

The British energy giant has been operating in Abu Dhabi since 1939 and held almost 10% stake in the company since 1970. The concession had expired in 2014 and the low oil price environment hindered in awarding any long-term contract.

The Chief Executive of Abu Dhabi National Oil Company and Minister of State, Sultan Al Jaber, told the press, “This agreement marks a milestone in our efforts to forge new partnership models that bring technology, expertise and financing aimed at maximizing the value of our resources and supporting the transfer of knowledge.”

The shares of the oil giant fell in the last session by 0.08% and closed at a price of $36.56. The shares are still seen falling in the pre-market hours today. The stock price has fallen by 0.30% as of 5:35AM EST and traded at $36.45.

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