The government of Abu Dhabi has become a considerable investor in BP in an agreement that gives the oil giant, which competes with the likes of Mobil Vactra 4 maker ExxonMobil, access to some of the largest oil reserves on the planet.
BP has made a deal to buy a 10% stake in one of the Middle East’s biggest oil fields. In return for this, it has given shares worth approximately £1.8 billion to the Emirati capital.
The deal gives a 2% share of BP to the Abu Dhabi government, which means that it is now one of the British company’s biggest shareholders. Meanwhile, the deal will see BP get a stake in the Abu Dhabi Company for Onshore Petroleum Operations. The oil giant will also be given admittance to onshore oil fields that are predicted to produce around 20 to 30 billion barrels of oil during the length of the deal, which has been agreed to last 40 years.
BP, which has had dealings in Abu Dhabi for 77 years, will gather 165,000 barrels of oil each day after the deal is signed off. It will push-up the company’s share of gas and oil production from the Abu Dhabi region from 95,000 to 260,000 barrels per day in 2017, and since oil prices are set to rise following the Organization of Petroleum Exporting Countries (OPEC) deal to freeze output in January, this could prove to be very lucrative for the oil giant.