BP takes $2.4bn stake in Abu Dhabi fields

BP 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.

The British oil company signed an agreement with state-run Abu Dhabi National Oil Company (ADNOC) giving it a 10 percent stake in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), which operates the concession.

"BP becomes a 10 percent shareholder in ADCO," ADNOC said in a statement. "The agreement includes BP becoming asset leader for the Bab asset group within the concession."

The ADCO concession, including the Bab, Bu Hasa, Shah and Asab fields, has total resources of between 20-30 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.

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Total was the first oil major to renew the concession, securing a 10 percent stake in January last year and putting its peers under pressure to improve terms after ADNOC said the French company made the best offer.

Asian and other Western oil firms also bid for stakes after a deal with major oil companies in the concession first granted in the 1970s expired in January 2014.

Total and BP had both held 9.5 percent equity stakes in the ADCO concession since the 1970s. Shell and Exxon were also partners in the old concession.

Since then other Asian energy companies were granted smaller stakes. INPEX Corporation of Japan, and GS Energy of South Korea received 5 percent and 3 percent stakes respectively.