Abu Dhabi National Oil Company (ADNOC) has awarded the UK’s BP a 10 per cent stake in the onshore oil concession operated by Abu Dhabi Company for Onshore Petroleum Operations (Adco).

As part of BP’s interest in the concession, it will become the asset leader for the Bab integrated asset group within Adco.

The agreement was signed on 17 December by Sultan Ahmed al-Jaber, Adnoc Group chief executive officer and member of the Supreme Petroleum Council of the Emirate of Abu Dhabi, and Bob Dudley, BP Group chief executive.

BP held a 9.5 per cent interest in the Adco onshore concession since the 1970’s. It expired in late 2014.  A new concession was put in place in January 2015. France’s Total has a 10 per cent stake, Japan’s Inpex Corporation 5 per cent, and South Korea’s GS Energy 3 per cent.

Adnoc says it will continue to explore opportunities with potential partners for the remaining 12 per cent stake of the 40 per cent earmarked for foreign partners.

As part of the agreement, BP will second up to 50 technical staff to Adco, bringing technology, expertise and experience to support the ongoing efficient operation and development of the assets.

BP has been present in Abu Dhabi since 1939.  It also holds a 14.67 per cent interest in the Abu Dhabi Marine Operating Company (ADMA-OPCO) offshore concession, and 10 per cent 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 approximately 95,000 barrels of oil a day.