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BP Clinches 10% Interest in Abu Dhabi's ADCO Concession
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BP plc (BP - Free Report) recently inked an agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (“ADNOC”) per which, the company gained an interest of 10% in Abu Dhabi Company for Onshore Petroleum Operations Limited (“ADCO”) onshore oil concession. We expect the news to positively impact BP’s stock price. Year to date, the stock price has moved up by 17.1%, while Zacks categorized sub industry Oil & Gas-International Integrated Market has increased by 19.2%. The ADCO concession has a life of 40 years. Apart from the interest in the ADCO concession, BP has gained a 10% ownership in ADCO, which operates the concession. With this agreement, BP becomes the asset leader for the Bab asset group within the concession.
Other stakeholders in the concession include Total of France, INPEX Corporation of Japan, and GS Energy of South Korea with 10%, 5% and 3%, respectively. ADNOC continues to look for partners to assume the remaining 12% stake of the 40% allocated for foreign partners.
Relating to the transaction, BP has agreed to issue new ordinary shares representing about 2% of its issued share capital (excluding treasury shares), to be held on behalf of the Abu Dhabi government. The issuance of the new ordinary shares is subject to certain listing requirements and is anticipated to be concluded soon.
The ADCO concession, which comprises the Bab, Bu Hasa, Shah and Asab fields, is estimated to hold total resources of approximately 20–30 billion barrels of oil equivalent over the term of the concession. In 2016, the total production is anticipated to average around 1.66 million barrels of oil per day (bpd). Brought online in Jan 2015, the concession is valid until the end of 2054.
In support of its interest in the ADCO concession and asset leadership of the Bab assets, BP expects to add about 50 technical staff to ADCO, bringing technology, expertise and experience to sustain the efficient operation and development of the assets.
BP’s presence in Abu Dhabi dates back to 1939. BP has been holding a 9.5% interest in the ADCO onshore concession since the 1970s, which expired in late 2014. Moreover, it holds a 14.67% interest in the offshore concession and ADMA-OPCO that operates this concession, and 10% interests in both the Abu Dhabi Gas Liquefaction Company (“ADGAS”) and the National Gas Shipping Company (“NGSCO”).
Currently, BP’s net share of oil and gas production from Abu Dhabi is about 95,000 bpd, which is estimated to increase to about 260,000 bpd in 2017.
This agreement is expected to provide BP with long-term access to large and competitive resources that it recognizes very well. BP is expected to bring its innovative technology and understanding of managing mature giant fields around the world to help maximize recovery from these assets.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the last four quarters.
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BP Clinches 10% Interest in Abu Dhabi's ADCO Concession
BP plc (BP - Free Report) recently inked an agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (“ADNOC”) per which, the company gained an interest of 10% in Abu Dhabi Company for Onshore Petroleum Operations Limited (“ADCO”) onshore oil concession. We expect the news to positively impact BP’s stock price. Year to date, the stock price has moved up by 17.1%, while Zacks categorized sub industry Oil & Gas-International Integrated Market has increased by 19.2%.
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The ADCO concession has a life of 40 years. Apart from the interest in the ADCO concession, BP has gained a 10% ownership in ADCO, which operates the concession. With this agreement, BP becomes the asset leader for the Bab asset group within the concession.
Other stakeholders in the concession include Total of France, INPEX Corporation of Japan, and GS Energy of South Korea with 10%, 5% and 3%, respectively. ADNOC continues to look for partners to assume the remaining 12% stake of the 40% allocated for foreign partners.
Relating to the transaction, BP has agreed to issue new ordinary shares representing about 2% of its issued share capital (excluding treasury shares), to be held on behalf of the Abu Dhabi government. The issuance of the new ordinary shares is subject to certain listing requirements and is anticipated to be concluded soon.
The ADCO concession, which comprises the Bab, Bu Hasa, Shah and Asab fields, is estimated to hold total resources of approximately 20–30 billion barrels of oil equivalent over the term of the concession. In 2016, the total production is anticipated to average around 1.66 million barrels of oil per day (bpd). Brought online in Jan 2015, the concession is valid until the end of 2054.
In support of its interest in the ADCO concession and asset leadership of the Bab assets, BP expects to add about 50 technical staff to ADCO, bringing technology, expertise and experience to sustain the efficient operation and development of the assets.
BP’s presence in Abu Dhabi dates back to 1939. BP has been holding a 9.5% interest in the ADCO onshore concession since the 1970s, which expired in late 2014. Moreover, it holds a 14.67% interest in the offshore concession and ADMA-OPCO that operates this concession, and 10% interests in both the Abu Dhabi Gas Liquefaction Company (“ADGAS”) and the National Gas Shipping Company (“NGSCO”).
Currently, BP’s net share of oil and gas production from Abu Dhabi is about 95,000 bpd, which is estimated to increase to about 260,000 bpd in 2017.
This agreement is expected to provide BP with long-term access to large and competitive resources that it recognizes very well. BP is expected to bring its innovative technology and understanding of managing mature giant fields around the world to help maximize recovery from these assets.
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Futurefuel Corp. (FF - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the last four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>