BP has signed an arrangement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC) that grants BP a 10% interest in Abu Dhabi’s ADCO onshore oil concession, which has a life of 40 years.

In addition to the interest in the ADCO concession, BP becomes a 10% shareholder in ADCO, the Abu Dhabi Company for Onshore Petroleum Operations Limited, which runs the concession. The agreement includes BP ending up being property leader for the Bab asset group within the concession.

In connection with the transaction, BP p.l.c. has accepted provide new common shares representing approximately 2% of BP’s released share capital (excluding treasury shares), to be held on behalf of the Abu Dhabi Federal government. The issuance of the brand-new normal shares undergoes particular listing requirements and is expected to be finished shortly.

The agreement was checked in Abu Dhabi by Bob Dudley, BP Group President, and H.E Dr. Sultan Ahmed Al Jaber, ADNOC Group Ceo, and council member of the Supreme Petroleum Council of the Emirate of Abu Dhabi.

Bob Dudley says, “Today’s arrangement marks a brand-new stage in BP’s long relationship with Abu Dhabi and, in particular, ADNOC. BP will work closely with ADNOC to understand the complete capacity of these world-class resources and I invite Abu Dhabi as an important financier in BP. This contract will offer BP with long-lasting access to substantial and competitive resources that we already comprehend effectively. We will bring our people, advanced innovation and experience of managing mature huge fields all over the world to help maximise healing from these assets.”

BP ends up being a 10% investor of ADCO and the concession along with Total of France, INPEX Corporation of Japan, and GS Energy of South Korea who hold interests of 10%, 5% and 3% respectively. ADNOC continues to try to find partners to take up the remaining 12% stake of the 40% allocation to potential foreign partners.

H.E Dr Al Jaber states,

“BP has long been a tactical partner to Abu Dhabi and ADNOC. Alongside our other partners, BP has played an important function in the advancement of our oil and gas properties. This arrangement marks a turning point in our efforts to create new collaboration models that bring technology, proficiency and financing focused on increasing the value of our resources and supporting the transfer of understanding. We anticipate dealing with value-add partners that share a mutual interest in advancing the market and applying innovative innovation that improves operational effectiveness and healing.”

The ADCO concession, consisting of the Bab, Bu Hasa, Shah and Asab fields, has overall resources of in between 20-30 billion barrels of oil equivalent over the regard of the concession. The general production in 2016 is anticipated to typical around 1.66 million bpd. The concession, put in place in January 2015, is valid up until the end of 2054.

In support of its interest in the ADCO concession and property leadership of the Bab assets, BP expects to 2nd as much as 50 technical staff to ADCO, bringing innovation, know-how and experience to support the continuous effective operation and development of the assets.

BP has actually been present in Abu Dhabi since early 1939. Since the 1970s, BP held a 9.5% interest in the ADCO onshore concession that ended in late 2014. It also holds a 14.67% interest in the offshore concession and ADMA-OPCO which operates this 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 currently around 95,000 barrels of oil a day and is anticipated now to grow to roughly 260,000 barrels of oil a day in 2017.