Gulf News reported that UK based energy giant BP PLC has been invited back to bid for a renewal of its stake in Abu Dhabi’s oil concession and the Abu Dhabi National Oil Company aims to announce a shortlist of bidders soon.
Although the oil concession doesn’t garner much income for BP it is important for the company to retain its foothold in the concession. It is also a chance for BP to improve the terms of the contract which currently only brings in revenue of around USD 50 million a year when the concession expires in 2014.
The invitation for BP to bid appeared to be under threat earlier this year after Adnoc sent out invitations in June to oil companies to bid for the renewed rights but didn’t send one to BP.
However, the UAE oil official said that UK Prime Minister Mr David Cameron’s recent visit to the Middle East helped smooth the process and that Adnoc hoped to announce a shortlist of bidders soon. BP has been allowed back in the bidding process and has been informed it can submit its bid for the concession.
A BP spokesman said that we’re looking forward to hearing the government’s plan on concession renewal in due course. We’ve been present in Abu Dhabi for over 70 years and we hope to play a continued role in this concession over the next 40 to 50 years.
The concession which is mostly onshore oil fields, brings in around USD 50 million a year in revenues to BP based on around USD 1 per barrel for the approximate 125,000 barrels a day of oil that accrue to BP from the project.
Abu Dhabi Company for Onshore Operations operates the concessions. Adnoc is 60% shareholder in Adco, BP has 9.5%. Other shareholders are Royal Dutch Shell PLC with 9.5%, Exxon Mobil Corporation with 9.5%, Total SA with 9.5% and Partex Oil & Gas with 2%.
