Now Reading
BP Allowed To Bid In Abu Dhabi Oil Concession

BP Allowed To Bid In Abu Dhabi Oil Concession

The British oil company was originally excluded from the process after not receiving a qualifying letter.

BP will be included in the bidding process to develop Abu Dhabi’s largest onshore oil fields following an about-turn after initially being omitted from the pre-qualification process.

The British oil company, which owns a 9.5 per cent stake in the Abu Dhabi National Oil Company (ADCO) concession, was originally excluded from the list having not received a pre-qualifying letter.

BP, one of four western multinationals operating the 75-year concession, will now now be allowed to put its name forward and will be a serious contender for the 1.4 million barrels per day (bpd) concession.

The concession brings in around $50 million a year in revenues to BP, based on the approximate 125,000 barrels a day of oil that accrue to BP at around $1 a barrel.

The initial omission was seen as a snub to BP and British businesses, believed to reflect annoyance in the Gulf at the UK’s support of reforms in the Arab world mixed with a desire to award more contracts to Asian businesses.

HE Abdulla Nasser Al Suwaidi, director general of ADCO, spoke to the Financial Times. He said: “If there was anything there, it’s gone. They didn’t miss anything.”

He added that the pre-qualifying letter had simply been “just soliciting interest” from parties and was ‘not necessary’ for a company of BP’s stature, reported the FT.

The turn of events comes just one month after the British Prime Minister, David Cameron, visited the UAE in a bid to strengthen the defence and commercial ties between the two countries.

Cameron’s visit was a timely one with relations between the UK and the UAE – and other GCC countries – a little strained after Britain’s apparent support of the uprisings that toppled a number of Arab leaders.

© 2020 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top