Abu Dhabi National Oil Company (ADNOC) signed on Saturday an agreement with BP, awarding the British oil and gas giant a 10 per cent interest in Abu Dhabi’s onshore oil concession operated by ADCO, the Abu Dhabi Company for Onshore Petroleum Operations.

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

The agreement was signed by Dr 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.

Dr. Al Jaber said: "BP has long been a strategic partner to Abu Dhabi and ADNOC. Alongside our other partners, BP has played an important role in the development of our oil and gas assets. This agreement marks a milestone in our efforts to forge new partnership models that bring technology, expertise and financing aimed at maximising the value of our resources and supporting the transfer of knowledge.'' "We look forward to working with value-add partners that share a mutual interest in advancing the industry and applying innovative technology that improve operational efficiency and recovery.

"Our renewed partnership with BP will support ADNOC in achieving maximum economic value and levels of recovery. This is an attractive and strategic agreement for both parties that will deliver competitive returns and long term growth opportunities," Dr Al Jaber added.

BP has been present in Abu Dhabi since 1939. Since the 1970’s, BP held a 9.5 per cent interest in the ADCO onshore concession that expired in late 2014. A new concession was put in place in January 2015. BP joins Total of France, Inpex Corporation of Japan, and GS Energy of South Korea as shareholders of ADCO and the onshore concession, who each own a 10 per cent, 5 per cent and 3 per cent interest respectively. ADNOC will continues to explore opportunities with potential partners for the remaining 12 per cent stake of the 40 per cent earmarked for foreign partners.

Bob Dudley said: "Today’s agreement marks a new phase in BP’s long relationship with Abu Dhabi and, in particular, ADNOC. BP will work closely with ADNOC to realise the full potential of these world-class resources. "This agreement will provide BP with long-term access to significant and competitive resources that we already understand very well. We will bring our people, cutting-edge technology and experience of managing mature giant fields around the world to help maximise recovery from these assets."

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 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.