Blueprint
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
Form 6-K
Report of Foreign
Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of
1934
for
the period ended December, 2016
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or
will file annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F
|X| Form
40-F
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Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the
information to the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes
No |X|
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press
release
17
December 2016
BP awarded 10% interest in Abu Dhabi's ADCO onshore
concession
●
Provides BP with material long-term onshore oil
reserves, production and cash flows
●
Deepens long-standing strategic relationship,
Abu Dhabi takes important equity holding in BP
BP
today signed an agreement with the Supreme Petroleum Council of the
Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC)
that grants BP a 10% interest in Abu Dhabi's ADCO onshore oil
concession, which has a life of 40 years.
In
addition to the interest in the ADCO concession, BP becomes a 10%
shareholder in ADCO, the Abu Dhabi Company for Onshore Petroleum
Operations Limited, which operates the concession. The agreement
includes BP becoming asset leader for the Bab asset group within
the concession.
In
connection with the transaction, BP p.l.c. has agreed to issue new
ordinary shares representing approximately 2% of BP's 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 expected to be completed
shortly.
The
agreement was signed in Abu Dhabi today by Bob Dudley, BP Group
Chief Executive, and H.E Dr. Sultan Ahmed Al Jaber, ADNOC Group
Chief Executive Officer, and member of the Supreme Petroleum
Council of the Emirate of Abu Dhabi.
Bob
Dudley said: "Today's agreement marks a new phase in BP's long
relationship with Abu Dhabi and, in particular, ADNOC. BP will work
closely with ADNOC to realise the full potential of these
world-class resources and I welcome Abu Dhabi as an important
investor in BP.
"This
agreement will provide BP with long-term access to significant and
competitive resources that we already understand very well. We will
bring our people, cutting-edge technology and experience of
managing mature giant fields around the world to help maximise
recovery from these assets."
BP
becomes a 10% shareholder of ADCO and the concession alongside
Total of France, INPEX Corporation of Japan, and GS Energy of South
Korea who hold interests of 10%, 5% and 3% respectively. ADNOC
continues to look for partners to take up the remaining 12% stake
of the 40% earmarked for foreign partners.
H.E Dr.
Al Jaber said: "BP has long been a strategic partner to Abu Dhabi
and ADNOC. Alongside our other partners, BP has played an important
role in the development of our oil and gas assets. This agreement
marks a milestone in our efforts to forge new partnership models
that bring technology, expertise and financing aimed at maximizing
the value of our resources and supporting the transfer of
knowledge.
"We
look forward to working with value-add partners that share a mutual
interest in advancing the industry and applying innovative
technology that improves operational efficiency and
recovery."
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 overall production
in 2016 is expected to average around 1.66 million barrels of oil
per day (bpd). The concession, put in place in January 2015, is
valid until the end of 2054.
Brian
Gilvary, BP chief financial officer, further commented: "We have worked closely with ADNOC to structure
an agreement that is attractive and strategic for both parties. It
is consistent with our aim of delivering competitive returns from a
portfolio with a balance of resource types, geographies and
resilient pricing models. The lower cost characteristics of this
already-producing conventional onshore oil development will be
accretive to earnings and cash flow, while providing BP with
another building block of long-term growth."
In
support of its interest in the ADCO concession and asset leadership
of the Bab assets, BP expects to second up to 50 technical staff to
ADCO, bringing technology, expertise and experience to support the
ongoing efficient operation and development of the
assets.
BP has
been present in Abu Dhabi since 1939. Since the 1970s, BP held a
9.5% interest in the ADCO onshore concession that expired in late
2014. It also holds a 14.67% interest in the offshore concession
and ADMA-OPCO which operates this concession, and 10% interests in
both the Abu Dhabi Gas Liquefaction Company (ADGAS) and the
National Gas Shipping Company (NGSCO). BP's net share of oil and
gas production from Abu Dhabi is currently around 95,000 barrels of
oil a day and is expected now to grow to approximately 260,000
barrels of oil a day in 2017.
Further information:
● BP press office, London: +44 (0)20 7496
4076, bppress@bp.com
Cautionary statement:
In
order to utilize the 'safe harbor' provisions of the United States
Private Securities Litigation Reform Act of 1995 (the 'PSLRA'), BP
is providing the following cautionary statement. This press release
contains certain forward-looking statements concerning the award to
BP of a 10% interest in the Abu Dhabi onshore ADCO oil concession,
the acquisition of a 10% shareholding in ADCO and the asset
leadership for the Bab integrated asset group, including
expectations regarding reserves, resources, production, earnings
and cash flows, and BP's long term growth. Actual results may
differ from those expressed in such statements, depending on a
variety of factors including changes in public expectations and
other changes to business conditions; the receipt of relevant
third-party and/or regulatory approvals; future levels of industry
product supply; demand and pricing; OPEC quota restrictions; PSA
effects; operational problems; regulatory or legal actions;
economic and financial conditions generally or in various countries
and regions; political stability and economic growth in relevant
areas of the world; changes in laws and governmental regulations;
exchange rate fluctuations; development and use of new technology;
the success or otherwise of partnering; the actions of competitors,
trading partners and others; natural disasters and adverse weather
conditions; wars and acts of terrorism, cyber-attacks or sabotage;
and other factors discussed under "Principal risks and
uncertainties" in our Stock Exchange Announcement for the period
ended 30 June 2016 and under "Risk factors" in our Annual Report
and Form 20-F 2015.
This
press release contains references to non-proved resources and
production outlooks based on non-proved resources that the SEC's
rules prohibit us from including in our filings with the SEC. U.S.
investors are urged to consider closely the disclosures in our Form
20-F, SEC File No. 1-06262. This form is available on our website
at www.bp.com. You can also obtain this form from the SEC by
calling 1-800-SEC-0330 or by logging on to their website at
www.sec.gov.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized
BP
p.l.c.
(Registrant)
Dated: 19
December 2016
/s/
J. BERTELSEN
..............................
J.
BERTELSEN
Deputy
Company Secretary