The Supreme Petroleum Council of the Emirate of Abu Dhabi (United Arab Emirates) and the Abu Dhabi National Oil Company (ADNOC) have signed a new 40-year onshore concession agreement with BP, granting the company a 10% participating interest in Abu Dhabi’s ADCO onshore oil concession.
The oil concession was put in place in January 2015 and is valid until the end of 2054. It is operated by the Abu Dhabi Company for Onshore Petroleum Operations Limited (ADCO, 60%) and similar agreements have been signed with Total (10%), INPEX (5%) and GS Energy (3%); ADNOC continues to look for partners to take up the remaining 12% stake of the 40% earmarked for foreign partners. The ADCO concession will include the fifteen principal onshore oil fields of Abu Dhabi, including the Bab, Bu Hasa, Shah and Asab fields, representing more than half of the Emirate's production. The concession has total resources of between 20-30 Gboe and the overall production in 2016 is expected to average around 1.66 mb/d.
In addition to the 10% interest in the ADCO concession, BP will take a 10% interest in ADCO, the Abu Dhabi Company for Onshore Petroleum Operations Limited, which operates the concession. The agreement includes BP becoming asset leader for the Bab asset group within the concession.