British energy major
BP Plc
(
BP
) has denied
Petroleum Intelligence Weekly
reports indicating that the company has been barred from the list
of companies permitted to tender for Abu Dhabi National Oil Co.'s
onshore oil fields.
BP announced that productive talks are ongoing at all levels.
Details have, however, not been revealed by Abu Dhabi National Oil
Co., the state-run producer known as Adnoc.
The
Petroleum Intelligence Weekly
reports had stated that BP was not given a three-page letter
inviting companies to submit bids for rights to the onshore oil
fields - Bu Hasa, Bab and Asab - which form a component of
the Abu Dhabi onshore Oil Operations, or Adco, concession.
The companies which reportedly received applications to prequalify
for bidding were
ExxonMobil Corporation
(
XOM
),
Total SA
(
TOT
),
Royal Dutch Shell Plc
(
RDS.A
),
Statoil ASA
(
STO
) and
Occidental Petroleum Corp.
(
OXY
).
Adnoc operates the most important concession in Abu Dhabi, the
capital of the United Arab Emirates. The region is known to hold
most of the nation's oil where Adnoc drills oil and natural gas
from onshore and undersea wells in joint ventures with
international companies. The agreement is set to terminate in 2014
and Adnoc is trying to renew it or achieve a fresh agreement with
the new partners.
Adnoc has a target of expanding output to 1.4 million barrels a
day. Therefore, the concession has identified certain companies to
assist it in reaching this goal. BP, ExxonMobil, Shell and Total
have had their presence in Abu Dhabi since 1939. These companies
were partnered by Adnoc in the 1970s, thus giving rise to the Adco
concession. The concession has rights in six deposits till 2014.
BP holds a Zacks #4 Rank (short-term Sell rating). Longer term, we
maintain our Neutral recommendation on the stock.
BP PLC (BP): Free Stock Analysis Report
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ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
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TOTAL FINA SA (TOT): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis
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