Mubadala to hold Abu Dhabi’s 2% stake in BP

Kuwait Times - - BUSINESS -

DUBAI:

State in­vest­ment fund Mubadala Devel­op­ment Co will con­trol a 2 per­cent stake in BP sold to Abu Dhabi in ex­change for a hold­ing in Abu Dhabi Com­pany for On­shore Petroleum Op­er­a­tions (ADCO), a spokesman said yes­ter­day. The firm be­came the se­cond West­ern oil ma­jor to re­new a 40-year on­shore con­ces­sion in Abu Dhabi on Satur­day af­ter al­most two years of ne­go­ti­a­tions to im­prove terms to help op­er­ate the United Arab Emi­rates’ big­gest oil­fields.

In ex­change for the 10 per­cent stake in ADCO, BP agreed to is­sue new or­di­nary shares to Abu Dhabi worth 1.76 bil­lion pounds ($2.20 bil­lion). “The in­vest­ment will sit within Mubadala and will be man­aged, as we have with pre­vi­ous in­vest­ments made by Abu Dhabi, for the strate­gic ben­e­fit of the emi­rate,” Mubadala spokesman Brian Lott told Reuters.

When asked if Mubadala would seek rep­re­sen­ta­tion on BP’s board, Lott said it was “too early to say”. The ADCO con­ces­sion, in­clud­ing the Bab, Bu Hasa, Shah and Asab fields, has to­tal re­sources of be­tween 20 bil­lion-30 bil­lion bar­rels of oil equiv­a­lent over the term of the con­ces­sion.

The fields pro­duce 1.6 mil­lion bar­rels per day (bpd) and are ex­pected to reach 1.8 mil­lion bpd from 2017. Mubadala is cur­rently be­ing merged with fel­low state in­vest­ment fund In­ter­na­tional Petroleum In­vest­ment Com­pany. — Reuters

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